The shale boom is making it hard to be an oil optimist.
Oil rose for the first time in six days as OPEC to backed prolonging supply cuts and other markets rallied after the first round of French presidential elections.
Oil fell below $50/bbl as investors lost faith that an extension of OPEC-led supply cuts will overcome growing U.S. production and ease a global glut.
Goldman Sachs Group says there’s no fundamental evidence in the oil market to justify this week’s selloff in prices.
Oil headed for its biggest weekly loss since early March as signals from OPEC that it will persevere with output cuts failed to offset evidence that U.S. supplies are plentiful.
Oil traded near its lowest in two weeks as comments from some OPEC producers that the group will extend output cuts were undermined by signs of rising supply.
When OPEC and Russia meet next month to assess the impact of their oil cuts they face a surprising outcome: stockpiles are even higher than when they started.
Oil dropped to a two-week low after a report showed U.S. gasoline supplies gained for the first time in nine weeks as crude output rose.
McKinsey Energy Insights (MEI), the data and analytics specialist that provides insight and support to the global energy industry, has released its latest Global Oil Supply and Demand Outlook, which identifies five potential supply and demand scenarios. If the market was to follow MEI’s business as usual scenario, it would expect oil prices to revolve around $60–$70/bbl over the next three years and balance close to $65–$75/bbl by 2030.
Oil dropped to the lowest in more than a week on signs U.S. output is rebounding, undermining OPEC’s efforts to clear a global glut.
Citigroup predicts oil will probably rally to the mid-$60s by the end of the year.
Crude declined below $53/bbl as the ramp-up of shale drilling spurred speculation that surging American output will offset OPEC-led efforts to cut a global supply surplus.
Oil eased losses as growth in U.S. drilling was partially offset by a weaker dollar.
OPEC is finally making some headway in its race against the tide of surging U.S. supplies, and speculators are giving the group greater credence.
The global oil market is moving closer to balance even as increases in U.S. oil production push prices down in the short-term, Saudi Arabian Oil Co. CEO Amin Nasser said.
Wall Street banks’ growing optimism about the energy industry is the latest boost for U.S. oil and natural gas producers already enjoying higher prices.
Buyers in the world’s biggest oil market are finding they can almost always get what they want, at a time when they weren’t expected to get what they need.
Crude was little changed after a government report showed U.S. stockpiles dropped from a record while production increased.
“We forecast that inventories will continue to decline driven by the combination of production cuts and the strong demand growth,” the analysts wrote, referring to oil. The bank reiterated its outlook for U.S. West Texas Intermediate to rise to $57.50/bbl and Brent crude to $59/bbl in the second quarter.
Options trading is signaling that the longest rally in U.S. crude oil since December has a few dollars to go.