Commodity Trade Mantra

Posts Tagged ‘Shale Wells’

Why Oil Prices Will Rise And Many Will Be Caught By Surprise

Oil industry investment is far below levels required just to replace production. The only thing that will change the vector of these declines is lots of spending, and the only thing will spur lots more spending is higher oil prices. Just like all the oil bulls had to be run out during the declining price stage, all the price bears will be run out when fundamentals hit them over the head.

Forget The Noise: Oil Prices Won’t Crash Again

The big story in oil prices was the rig count on the way down. The big story on the way up will be inventory. Look for WTI crude oil to make a move towards and maybe into the $70’s as clarity strikes the market. Look too for more walls of worry but remember to consider the source.

The Top 12 Media Myths On Oil Prices

The upstream oil and gas industry is not a black hole. Its only when the media gets a hold of it, it all becomes complicated. There is so much hyperbole and unsupported guesswork that investors don’t have a chance. So, in a small effort to set the record straight, let’s see if we can’t dispel some of the misinformation.

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.

U.S. Shale Boom May Come To Abrupt End

I believe US oil production will fall sooner & more sharply than many analysts predict. Average well productivity has decreased by one-third. Every rig taken out of service today has more than 3 times the impact on daily production as before pad drilling became common. A good thing for oil price recovery but maybe not for future shale plays.

Why Russia Will Halt the Ruble’s Slide and Keep Pumping Oil

Fall of the ruble has accompanied a precipitous decline in oil prices. Russia, a resource-based economy, is hurt by oil weakness. But oil is traded nearly everywhere in US dollars, which are presently enjoying considerable strength. Russia can sell their oil in dollars but pay their expenses in devalued rubles & make capital improvements.

follow us

markets snapshot

Market Quotes are powered by India

live commodity prices

Commodities are powered by India

our latest tweets

follow us on facebook