Commodity Trade Mantra

Posts Tagged ‘Shale Producers’

Why North-American Oil Is Positioned To Win In The Long-Run

Not only are North American oil producers displacing non-North American imports from the U.S. market, U.S. producers are competing for share in foreign crude oil and petroleum product import markets. Lifting the ban on crude oil exports at the end of 2015 will increase U.S. exports. The “growing volumes of exports” from the U.S. are now “spooking the markets.”

Why Is Oil Price Tumbling: Oil Hedges Were Just Rolled Over

As a result of a new bevy of hedges put on around $50/barrell which coupled with the recent decline in the oil VIX leading to slightly cheaper hedges, firms can once again continue to produce at even lower prices as they have rebased their hedges thereby buying themselves a few more months of oil production at even lower prices – offsetting Saudi record production pressures.

Making Sense Of The Weakness In Oil Prices

Saudi Arabia was instrumental in exacerbating the oil slump at the end of last year, when it decided at November’s OPEC meeting not to cut production to support the oil prices. The rationale was that shale producers needed a high price to stay in business. Let the oil prices fall and they’ll go bankrupt – along with those who financed them. It hasn’t really worked. Why?

The Coming May Oil "Buy Signal”

According to a U.S. EIA report, the huge surge of growth for the past five years in America’s shale patch is coming to an end. This is a watershed moment for the U.S. shale boom — and a vitally important moment for investors, too. So what does this mean for the price of oil? And what does this mean for shale producers?

The End Of OPEC - The Benefit of the Crude Oil Cartel is Gone

OPEC seems at a loss about how to cope with competition & is struggling to influence other big producers outside the organization like Russia & Brazil. Unable to come up with a strategy to handle these new developments, the cartel has decided not to intervene, hoping that low prices will eventually curb production in the US.

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