Oil prices climb from Monday’s lows but supply worries damp recovery
The financial markets decided that a global trade war wasn’t quite upon us yet this morning. That let stocks and oil bounce back a tad. But it also gave oil traders room to start worrying about oil supply again–after they spent Monday worrying that a...
Oil up strongly this morning on inventory draw down
The U.S. Energy Information Administration reported this morning that U.S. crude oil inventories fell 2.62 million barrels for the week ended March 16. Last week inventories rose by 5 million barrels. As of 11:20 a.m. New York time U.S. benchmark West Texas...
Projections for U.S. oil sale production call for faster, higher, longer
The executive director of the International Energy Agency today said that “explosive growth” in U.S. oil production from wells in shale geologies is likely to extend beyond 2018. As you might just imagine, an oil market that is struggling to believe that...
Saudis push OPEC to go for $70 a barrel
The goal was to cut production enough to reduce global oil inventories to their five-year average. The hope of the coalition of OPEC and Russia that reduction in production would get oil prices up to $60 a barrel. Now with that inventory reduction just about in place...
Inventories drop, oil prices kiss $70 a barrel
U.S. crude oil inventories fell by a surprising large 4.95 million barrels last week, the U.S. Energy Information Administration announced this morning. This took international benchmark Brent crude up as high as $70 a barrel during trading on Thursday before closing...
Oil continues to rally on day after OPEC extends production cuts
After climbing yesterday by 1.7% on news that OPEC and allies including Russia would extended their agreement to cut production through the end of the year, oil rallied again today. U.S. benchmark West Texas Intermediate closed up 1.64% to $58.34 a barrel....
The great energy sector puzzle: Oil is up but oil stocks are down?
Let’s take a look beyond today’s drop in oil on jitters about Thursday’s OPEC meeting and that group’s decision on extending (or not) its cuts in production. Today West Texas Intermediate, the U.S.crude benchmark, is down 1.37% as of 1 :30 to...
OPEC raises global oil demand forecast–and its projection for U.S. shale production
I can’t resist: It’s the classic good news/bad news set up. Good news for oil prices: OPEC raised its forecast for global oil demand in 2021 by 2.3 million barrels a day above last year’s projection. It also raised its oil demand forecast in 2040 by...
Nothing like a purge in Saudi Arabia to send oil prices higher
It’s not so much that the anti-corruption crackdown launched by Saudi Crown Prince Mohammed bin Salman over the week signals any significant change in the kingdom’s oil policies. It’s just that any turmoil in Saudi Arabia sends oil traders scrambling...
Oil stumbles, banks retreat: So where’s the leader for the next rotation?
Oil prices fell today with U.S. benchmark West Texas Intermediate falling 1.29% to $50.64 a barrel and international benchmark Brent crude down 1.11% to $56.31 a barrel. Oil prices were even lower in the early going with West Texas Intermediate touching $50.23 a...
Oil up on U.S. inventories and then down on export numbers
Oil started the day rallying on a report by the U.S. Energy Information Administration for a draw down of 6 million barrels in U.S.crude inventories for the week ended September 29. And then oil fell on reports of a surge in U.S. oil experts large enough to raise...
How much risk and reward are there in Schlumberger’s new business model? Does this stock remain a long-term 50 Stocks portfolio pick?
Schlumberger’s (SLB) next quarterly earnings report on October 20 will be a major test of the company’s new business model. I hold the shares in my long-term 50 Stocks portfolio. For me the quarter will provide an early indication of how much volatility...
OPEC meets Friday and oil market moves into “guessing” phase
Want to play along as the oil market tries to guess what OPEC will do at its Friday meeting? West Texas Intermediate moved down, slightly, to $49.56 a barrel, a 0.7% retreat, as of 3 p.m. New York time. International benchmark Brent moved 0.52% lower to $55.19 a...
Here we go again: Oil supply and demand “near” to balancing
If you think you’ve heard this before, you’re absolutely right. Nonetheless, oil rallied today on a forecast from the International Energy Agency that oil stockpiles in developed countries could hit or fall below their five-year average “very...
Trying to put a date and figure on the peak in U.S. oil production
How soon will U.S. oil production from wells in oil shale geologies peak? It’s the big question for U.S. oil producers and for a global oil market swimming in excess inventory. As long as U.S. oil production continues to increase all of OPEC’s production...
Higher production and lower capital spending–that’s the picture from U.S. oil shale producers
The earnings reports from U.S. oil shale producers are painting a very uniform picture so far: Production was up in the second quarter; capital spending budgets will be reduced for the remainder of 2017; and despite those capital spending cuts production is expected...
Oil rallies for another day on inventory drop in EIA report
The July 26 report from the U.S. Energy Information Administration followed up on the surprisingly good news yesterday on U.S. crude inventories from the American Petroleum Institute. The numbers from the American Petroleum Institute showed a much bigger than expected...
Oil market can’t decide what “facts” count
Sometimes a market will move in response to a new fact reaching traders and investors. Sometimes, though, a financial market will change direction because traders and investors choose to emphasize a different set of facts today than yesterday. And that’s where...
Oil rebounds as long positions evaporate, shorts climb
Hedge funds and other money managers have cut their long positions on crude futures to the lowest level since November, according to the U.S. Commodities Trading Commission, for the week ended on June 20. At the same time short positions, which are bets that oil...
Oil gets a breather today, so far, but what will turn around the bear?
A month ago when OPEC extended its production cuts to to the end of 2017, Saudi Arabia promised to do “whatever it takes” to stabilize oil prices. Now it’s not at all clear what the Saudi’s can do. The dual problem is rising production from...
Today it’s all about oil–again
As of noon New York time, U.S. benchmark set Texas Intermediate was off 2.9% to $42.92 a barrel–below, again, not just $45 but the $43 a barrel level that has provided support. International benchmark Brent crude was off 2.56% to $45.71. A break in Brent below...
Oil markets disappointed as OPEC does the expected
OPEC and allied non-OPEC producers have agreed to extend oil production cuts at current levels for nine more months through March 2018. Oil markets, which had been expecting exactly this result for days now, fell on disappointment that OPEC didn’t go further and...
Oil climbs as Saudis, Russians agree on continued production cuts
It still has to be ratified at the May 25 meeting of all OPEC members, but it looks like Saudi Arabia and Russia have agree to extend current production cuts past their June expiration. At least the oil market certainly believes that’s the case. U.S. benchmark...
Oil pushes higher on inventory report and global markets (except for China) follow
U.S. inventories of crude fell by 5.25 million barrels for the week ended May 5, according U.S. Energy Information Administration. Oil analysts had expected a smaller draw of 1.8 million to 2 million barrels. That was enough to fuel a big rally in oil prices with the...
Oil back down this morning as “hedgies” reposition
So much for Monday’s oil rally. This morning, a day after Russia and Saudi Arabia succeeded in talking up oil prices with promises that OPEC and allied non-OPEC producers would extend the current production cuts past their June expiration until the end of 2017,...
Oil up today after plunge yesterday: What’s this volatility telling us?
Oil prices have bounced back this morning from yesterday’s tumble with West Texas Intermediate climbing 1.63% and the Brent international benchmark advancing 1.49% as of 11:45 a.m. New York time. The gain still leaves West Texas Intermediate below $50 a barrel...
Saudis reverse 1/3 of production cuts; oil market trembles
Saudi Arabia has told OPEC that it will not play sucker to countries that won’t meet OPEC’s targets for production cuts. Russia, Iraq, and the United Arab Emirates have not yet delivered the production cuts they agreed to. Saudi Arabia has said that it...
Oil falls below $50; market rethinks Trump reflation trades
West Texas Intermediate was down 2.74% to $48.90 a barrel today as of noon New York time. International benchmark Brent crude was lower by 2.60% to $51.73 a barrel. The drop in West Texas Intermediate brought the price per barrel below the psychologically important...
Oil gets crushed as traders lose patience with stubbornly higher supply
“If it wasn’t for bad luck, I’d have no luck at all,” Walter Mosley wrote. Today it was “If it wasn’t for bad news, there’s be no news at all” for the oil sector. Oil prices got crushed today with U.S. benchmark West Texas...Jim’s Daily Email Alerts:
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