Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )

So it appears the “floor” for West Texas Intermediate prices (at the moment) is $40, as evidenced by a January Fed survey by CNBC. Prices are currently roughly $5 above the January 28 low of $44.45 – a climb of approximately 10%. The price of Brent, on the other hand, is flirting with the $60 range – up more than 20% from its January 9 low of $46.59.

More than half of the 33 economists in CNBC’s report believe the widening differential is in response to excess supply. The United States crude inventories are at an all-time high and continue to climb even though the onshore rig count has dropped by 28% since the beginning of the year. But the decline is slowing: last week’s reduction consisted of 48 rigs, or 4% of the fleet.

The climb may not be enough to the members of OPEC, reports the Financial Times. Nigeria’s oil minister said on Monday that the cartel may stage an emergency meeting within the next six weeks. The cartel’s next official meeting is in June.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.