Short-term prices likely to remain low Both the Energy Information Administration (EIA) and International Energy Agency (IEA) released their most recent pricing outlooks for the energy markets today, giving a glimpse into what two of the most widely followed energy agencies see as the future of energy markets. The EIA’s Short Term Energy Outlook (STEO) forecasts prices out through 2016,
Size and timing of production rollover will depend on OPEC output The Canadian Imperial Bank of Commerce (CIBC) released its Oil View today, making some changes to its price forecasts from its previous release in August. CIBC’s new call on WTI for 2015/2016 is $51.75/$61.25, down from $54.00/$62.50 in its previous report. CIBC also lowered its price forecast for European
Oil continues climb Oil prices continued to climb today, following a trend from late last week. West Texas Intermediate for October 2015 was trading at $47.50 per barrel today, up about $10 from last Monday’s lows. Last week, better than expected economic data, improvements in the Chinese economy and an unexpected draw on crude oil led to both WTI and
Concerns in China push global markets down China’s Shanghai Composite index saw the single largest one-day percentage loss since 2007 earlier today, shedding 8.5% of its value. Even as Chinese authorities allowed pension funds managed by local governments to invest in the stock market for the first time, potentially channeling hundreds of billions of yuan into the country’s market, concerns
CIBC’s Katherine Spector: “In the very short-term, while there may be a few more dollars of downside in the crude price, increasingly lopsided futures market positioning suggests that an end is probably near.” The world will need more oil from OPEC, but not as much as they are producing The most recent oil market outlook released by Canadian Imperial Bank
The EIA’s Short-Term Energy Outlook shows declining production as prices drop The U.S. Energy Information Administration (EIA) released its July Short-Term Energy Outlook (STEO) today, showing lower production in the month of July as prices continue their downward trend. The EIA reported that U.S. crude oil production declined by 100 MBOPD in July compared with June. Production is expected to
Are we in the Middle of a V-Shaped Recovery that’s N-Shaped? “Prices are too low for everybody”: Saudi Oil Chairman Oil prices have been beaten down enough. “Notorious” is an accurate descriptor of the oil and gas industry. When business is good, business is good. When it’s not… well, the ugly side of the industry rears its head. As earnings
WTI closed higher for the first time in five sessions yesterday The front month West Texas Intermediate contract is up $1.25 from yesterday’s close of $47.98 per barrel. The 2.3% increase in WTI front month contracts marked the first time in five sessions that the price of the U.S. crude benchmark finished the day strong than when it started. The
Oil prices break the 100-day moving average Both Brent crude and West Texas Intermediate (WTI) saw a sharp fall on July 6, 2015, resulting from a variety of negative factors. WTI closed at $52.71, a 7.5% drop, while Brent tumbled 8.5% to $56.81. Both the international and U.S. benchmarks broke below the 100-day moving averages. The WTI drop is the
The price of West Texas Intermediate (WTI) closed at a discount of $3.09 to Brent on June 19, 2015. The gap is the lowest in five months, when the spread narrowed to $2.76 at the closing of January 21. WTI prices have greatly stabilized in recent months as production has plateaued. Rig counts fell by only two this week, according
West Texas Intermediate is expected to average $5 less than Brent for 2015-2016 The Energy Information Administration (EIA) released its Short Term Energy Outlook (STEO) for the month of May, showing prices for both Brent and West Texas Intermediate (WTI) are stronger than in the past. Brent crude averaged $64/bbl in May while WTI averaged $59/bbl, both up $5 from
Falling Rig Count, CapEx Cuts Having Impact Groundhog Day might have been a scare for two out of three groundhogs, but not for the world’s oil bulls. In spite of warnings of a short-lived rally from some banks, oil prices managed to climb nicely on Feb. 2, maintaining about a $5 spread between the key benchmarks, WTI and Brent. Analysts point
