|Day's Range||51.91 - 52.73|
Investing.com - Oil prices rose on Wednesday in Asia following reports of a production loss of 315,000 barrels per day (bpd) from the El Sharara oilfield, which was seized at the weekend by a local militia group.
Oil prices only rallied modestly after OPEC and partners announced a new round of output cuts, and volatile global markets now seem to have put a cap on crude
The global oil markets could be about to see some drastic geopolitical changes as OPEC and Non-OPEC formalize cooperation in the first quarter of next year
Marathon Petroleum (MPC) stock has lost more than Delek US Holdings (DK) in the past month. In the previous part, we discussed that Delek US Holdings stock has fallen 4.1% in the past month.
Saudi Arabia has persuaded two dozen oil producers to cut output and will sharply throttle back its own production over the next two months. President Donald Trump had urged the Saudis to keep pumping at high volumes in order to cut fuel prices. Saudi Arabia took a "Saudi first" stance by taking action to end an oil price slump and protect its own interests.
Canadian crude prices recovered in the last couple of days, with WCS gaining over 70 percent after Alberta’s Premier announced an unprecedented production cut
In the week that ended on November 30, US crude oil inventories were 6% higher than their five-year average—one percentage point less than in the previous week. Oil prices and the inventories spread usually move inversely.
On December 10, US crude oil January 2019 futures closed ~$1.65 below January 2020 futures. On December 3, the futures spread was at a discount of ~$1.12. From December 3 to 10, US crude oil January futures fell 3.7%.
On December 10, US crude oil January futures fell 3.1% and settled at $51 per barrel. The Energy Select Sector SPDR ETF (XLE) fell 1.6% on the same day.
Last week, the oil rig count fell sharply by ten to 877. The rig count tends to follow US crude oil prices with a three- to six-month lag.
OPEC and its Non-OPEC partners are set to sign an agreement in March of next year, formalizing their alignment in terms of production cuts and market balance
Leading analysts see the new OPEC+ deal as a success and think that the proposed cuts could restore balance to oil markets in 2019
On December 7, JPMorgan Chase (JPM) cut Chesapeake Energy (CHK) from a “neutral” to an “underweight” rating. On the same day, JPM reduced its price target on Gulfport Energy (GPOR) to $8 from $11. JPM also reduced its price target on EQT Corporation to $24 from $50.
German tech company Siemens announced the launch of the first hybrid power plant for offshore rigs with lithium-ion batteries for energy storage
China’s November oil imports hit a record high of 10.48, but the growing demand could backfire if Washington and Beijing can’t agree on a trade deal
On December 7, the US 10-Year Treasury Constant Maturity Minus 3-Month Treasury Constant Maturity yield spread fell to ~45 basis points—a multiyear low. The contraction in the yield spread might be due to investors’ demand for a longer-dated maturity security than a shorter dated security. In the last three decades, when the yield spread turned negative, a recession started in the next year. Another contraction in the yield spread might be trouble for oil bulls. Oil is a growth-driven asset.
2019 is shaping up to be a pivotal year for an ever more divided OPEC, as the cartel faces oil market uncertainty and a shifting geopolitical playing field
Reuters' sources in Riyadh have confirmed that the Kingdom of Saudi Arabia is looking to cut oil exports by 1 million barrels per day in January