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Output Freeze No Help
A recent article in “World Oil” reports that Goldman Sachs dismisses the impact of the recent oil production freeze agreed to by Saudi Arabia, Russia, Venezuela and Qatar. While an agreement between OPEC and outside producers would be the first in fifteen years, analyst Jeffrey Currie questions whether it will ever materialize. Further, to really… Read More
Déjà vu All Over Again?
A contango exists when the market perceives that future prices will exceed current ones. This is now the case with oil. Investors and traders are attempting to exploit this by selling futures contracts at the higher prices and buying at prevailing prices. As long as the costs of acquisition and storage are less than the… Read More
IEA’s Forecast
“Rigzone” reports that in a recent statement the International Energy Agency (IEA) foresees an oil surplus for most of 2016 with excess output going into storage. The Agency anticipates production declines, but not quickly. It also does not think an agreement between OPEC and other producers to curb production is likely. While the IEA does… Read More
Vitol’s View
“World Oil” reports that Vitol, the world’s largest independent oil trader, anticipates a decade of low prices. In an interview with Bloomberg, CEO, Ian Taylor, opined that Vitol anticipates oil trading in a band between $40 and $60 per barrel, bouncing around a mid-point of $50. Taylor cites a slowing Chinese economy as dampening demand. … Read More
Emerging Consensus
According to a recent article in “World Oil”, a consensus as to where oil prices are headed seems to be emerging. This is based on data compiled by Bloomberg after interviews with 17 industry insiders. These included traders, operators, lenders and analysts. By and large, they all expect oil prices to rebound by year-end. The… Read More
