Commodity Trade Mantra

Posts Tagged ‘Oil Price Rally’

Is Putin’s Support For An OPEC Freeze A Game Changer for Crude?

The array of comments from OPEC and Russian officials over the past week could signal that a real effort might be underway to reach a deal on freezing production. Iraq would support a deal; Iran will attend the meeting & the potential for an OPEC deal received an endorsement from a surprising source – Russian President Vladimir Putin threw his weight behind a production freeze.

Slump In Oil Prices May Burn The Oil Industry Again

When oil prices fall, volatility increases & the floodgates of capital open. Every genius-investor wants to buy low & sell high. Rig count rises with fresh capital, production increases & oil prices fall. When oil prices rose from $26 in mid-Feb to over $51 by early June, the rig count change rate exploded. Predictably, oil prices are falling again on continuing the same thing that got you in trouble before.

Has the Oil Price Rally Gone Too Far? Time for a Correction or Yet More to Rise?

As usual, the oil markets are rife with confusion and uncertainty. Speculators could be overextending themselves – Or – realize that the rally has run out of steam & then decide to pocket their profits. The longer-term looks a little clearer on the back of rising demand and shrinking supply. The market will have to balance out; the only debate is over how quickly that happens.

Here Is Why Crude Oil Prices May Not Move Higher

The investigation I have presented here about the possible similarities between the present increase in oil prices and the false price rally of March-June 2015 reinforces my sense that a return to higher oil prices is not at all straight-forward. Oil markets are a leading indicator for the broader economy because the economy runs mostly on energy and not so much on money.

Current Oil Price Rally Will Fizzle Out Say Analysts

All three of the energy bodies (IEA, U.S. EIA and OPEC) see the oil glut persisting into 2016, potentially taking another year for oil markets to balance out. And while all of them have some differences on where oil prices are heading in 2016, all of them seem to agree that there won’t be large price gains in the near-term.

Could We Finally Have A Meaningful Oil Price Rally?

There are a few reasons for the newfound bullishness in oil prices. First, rig count declines are starting to slow. Second, a likelihood that production has also flattened and is approaching a decline. Another reason for the oil price surge was due to the markets shaking off concern that Iranian crude will suddenly flood the market.

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