Brent crude oil broke $40 per barrel for the first time in 2016 Both U.S. and international crude benchmarks are up over 5% today as rumors of a potential OPEC price floor give new hope of a “fair price for producers and consumers” – a phrase once favored by OPEC. WTI is up nearly $2 at $37.84 per barrel today,
Just 14% of 2016 production hedged With oil and gas prices holding lower for longer, many operators are looking for ways to protect as much of their production as possible. Hedges have offered some level of protection to producers through the commodity price rout, but with just an estimated 14% of production hedged in 2016, according to Reuters, producers are
The dreaded surplus is only 3 days’ production Global oversupply in the oil market has almost become a curse word in the oil and gas industry. Since the OPEC decision to maintain output levels on November 28, 2014, the industry has seen storage numbers rise and commodity prices fall. Increased U.S. production and a global battle for market share have
The current running rig count of 809 in the United States is the lowest in five years, but analysts from Raymond James Equity Research believe we haven’t reached the trough yet. Not even close. In a market report issued on October 5, 2015, the firm believes lower-than-expected drilling activity and a delayed rebound in commodity prices will drag the U.S.
Two Wild Cards, Two Steps to Rebalance (NOTE: Part One of this two-part analysis was published yesterday and can be accessed here.) Wild Card No. 1: Iran Iran is the loudest blender of the oil market margarita. The EU used to be the first trading partner of Iran, but due to the sanctions regime, China, the UAE and Turkey are now Iran’s main
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
Weaker dollar helps oil prices find $46 West Texas Intermediate prices gained 2.2%, or $1, Tuesday after loses Monday, rising to $46.17 per barrel on the New York Mercantile Exchange. The recovery was boosted by a weaker dollar, making oil more affordable to holders of other currencies. Brent crude prices rose 1.5%, or $0.73, to $50.25 per barrel on the
Plains All American Pipeline (ticker: PAA) and its general partner, Plains GP Holdings (ticker: PAGP), held their 2015 Analyst Day in New York on June 4. The consortium began its presentation by reflecting on a section from its 2014 Analyst Day, titled “Planning for Continued Industry Growth; Preparing for Periodic Disruptions; Positioned to Deliver Solid Results in Either Environment.” Disruptions
May’s uncanny price stability, Iraq production growth, OPEC’s unknowns and shale’s “Fracklog” all competing for visibility in global petroleum’s crystal ball West Texas Intermediate (WTI) oil prices have ranged from $57.26 to $60.93 for the entire month of May, offering the greatest sign of stability we have seen since November 2013. Analyst firms and oil companies are speaking with much
Sinopec announces FY 2014 results China’s Oil major Sinopec (ticker: SNP) released its full-year 2014 results over the weekend, showing lower revenues despite continued growth in production. According to the company’s release, this was due to the dramatic fall in oil prices seen in the second half of 2014. In accordance with the International Financial Reporting Standards (IFRS) 2014, the
The dust is settling on the first phase of the global oil market share war. Oil has been hovering around $50/barrel for nearly a week – a long-awaited relief to the industry which was wondering, exactly, where is rock bottom? The recent stabilization of oil prices has prompted some analysts to make the necessary adjustments to their respective models and
Oil traders experienced a moral victory today, witnessing West Texas Intermediate (WTI) close at $52.13 – the highest since January 5, 2015. The spot price has rebounded 17% in less than a week, dating back to the closing of $44.45 on Wednesday, January 27. A note published this morning by Stifel provided more bullish forecasts for investors, and even upgraded
