Demand is coming back faster than supply and we're going to need more supply to meet that demand," said Phil Flynn, senior analyst at Price Futures Group in Chicago.
The International Energy Agency (IEA) said in its monthly report that the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, would need to boost output to meet demand set to recover to pre-pandemic levels by the end of 2022.
"OPEC+ needs to open the taps to keep the world oil markets adequately supplied," the Paris-based energy watchdog said.
The thing is that oil companies across the globe have been doing a lot less drilling, even with the increase in price. Normally the price goes up, oil companies increase spending, drill more to meet the higher price and then the price comes down. For the first time, that hasn't happened. So it doesn't matter what the Saudis and anyone else want the price of oil to be at, or what effect it will have on the economy. Once the existing wells are at full capacity that's it until more wells are drilled. That takes time, not just money. DIAMOND HANDS! I I I I $CDEV $XEC $SM $MTDR $SU $OXY $MRO $LPI $KOS $VET $CVX $XOM $SUN $WLL $OAS $EOG $COG $APA
U
Cargo ships, airplanes, fire trucks, construction trucks, bulldozers, search and rescue equipment, farming equipment, military tanks and equipment, Do not run on batteries LoL I think covid-19 made people Koo Koo. LoL
T
Buy any dip at this point. The big oil company's are profitable when oil is above $55 so don't wait for there next earnings report to get in if you want to be part of the big move. Far as EV's effecting major oil companies, pre pandemic airlines were using 60% of the fuel produced so if every car in the world was replaced it would only amount to a 20% drop in daily use. Think about that!
Oil Extends Gain From 2018 High With Saudis Upbeat on Demand Ben Sharples: Tue, June 1, 2021, 8:37 PM
(Bloomberg) -- Oil extended gains after closing at the highest since October 2018 as OPEC+ provided an upbeat assessment of the demand outlook and the prospect of a speedy return of Iranian barrels to the market waned.
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said demand “has shown clear signs of improvement” as the alliance ratified an output boost for July. His Russian counterpart also spoke of the “gradual economic recovery,” with the comments driving West Texas Intermediate up by 2.1% and pushing Brent above $70 a barrel at the close for the first time since 2019.
Adding further support to the market was an indication that talks to revive a 2015 nuclear accord with Iran has been delayed for now. An Iranian official said a deal is now expected to be finalized in August.
Oil is up around 40% this year as the recovery from the pandemic in the U.S., China and parts of Europe boosts the outlook for fuel consumption, despite a Covid-19 resurgence in countries such as India. Global demand may rebound to levels seen before the outbreak in a year, according to the International Energy Agency, signaling a quicker comeback than its previous estimates.
The prompt timespread for Brent was 41 cents in backwardation -- a bullish market structure where near-dated prices are more expensive than later-dated ones. That compares with 9 cents at the start of last week.
OPEC+ ministers agreed Tuesday to press ahead with an increase of 841,000 barrels a day in July, following hikes in May and June, although the group didn’t give any hints on future supply moves. There’s reason to be cautious about the second half of the year, with the outlook dependent on two hard-to-predict factors: the coronavirus and nuclear talks between Iran and the U.S.
Diplomats had hoped to fully restore the nuclear deal before Iran’s June 18 presidential elections, after which the presidency of Hassan Rouhani will wind down. An agreement is expected to result in a lifting of U.S. sanctions and an increase in Iranian oil exports, although there are varying estimate on how much crude could return to the market. DIAMOND HANDS! I I I I $CDEV $XEC $WES $SM $MTDR $FLNG $SU $OXY $MRO $LPI $KOS $VET $CVX $XOM $SUN $WLL $OAS $EOG $COG $APA
Why Oil Keeps Rising Even as Other Commodities Pull Back Avi Salzman: June 2, 2021 11:09 am ET
Prices of commodities like steel and corn have pulled back from the highs they hit last month, but oil has continued to climb, buoyed by signs of increasing travel around the world and new pressures on supply.
Brent crude futures, the global benchmark, were trading 0.4% higher, to $70.56 a barrel, on Wednesday. West Texas Intermediate futures were up 0.3%, to $67.94 a barrel.
Oil has risen for some of the same reasons as other commodities — the speed of the reopening and supply shortages in some areas.
But other factors are also at play that may prolong the oil rally even as some other commodity prices have begun to decline. Morgan Stanley analyst Devin McDermott wrote in a note published Wednesday that political dynamics were likely to cap the growth in oil supply even as demand continues to rise in the years ahead.
The International Energy Agency recently wrote that oil-and-gas companies would have to keep their capital expenditures at or below 2020 levels for the world to achieve net zero carbon emissions by 2050. McDermott expects public company shareholders will demand that companies adhere to this rule. Exxon Mobil (ticker: XOM), Chevron (CVX), and Royal Dutch Shell (RDS. A) all faced reckonings last week over their climate impacts, and the pressure will only grow.
Demand, however, may not drop as much as supply — though there is a robust debate going on about whether demand has already peaked or could keep rising for at least another decade.
Morgan Stanley oil strategist Martjin Rats expects demand will keep rising to 107 million barrels a day by 2033, from 100 million barrels at the start of 2020. To satisfy that increasing demand, Rats expects state-owned oil companies and private firms will have to ramp up production, and oil prices will need to rise to fund that expansion. Currently, public companies account for about half of oil supply. Prices might even have to rise to $80 a barrel to induce private companies and state-owned ones to cover the gap. Rats increased his long-term Brent price target to $60 from $50.
McDermott thinks that different stocks will outperform depending on oil prices. At $60 West Texas crude prices, APA, formerly Apache (APA), Diamondback Energy (FANG), Ovintiv (OVV), ConocoPhillips (COP), and Devon Energy (DVN) look attractive, he says.
At $70, those stocks still look good, as do companies with more financial or operating leverage like Murphy Oil (MUR), Occidental Petroleum (OXY), and Continental Resources (CLR). DIAMOND HANDS! I I I I $CDEV $XEC $WES $SM $MTDR $FLNG $SU $OXY $MRO $LPI $KOS $VET $CVX $XOM $SUN $WLL $OAS $EOG $COG $APA
U
Solar panels use petroleum. The photovoltaics, which turn sunlight into energy, are typically sandwiched between layers of copolymers. One of the petrochemical building blocks common to many of the copolymers is ethylene—a petrochemical derived from oil and natural gas.
U
To develop the world, more oil will be needed, not less. Developing the world means more modern buildings, homes, bridges, roads, airports, etc. Cargo ships, airplanes, fire trucks, construction trucks, bulldozers, search and rescue equipment, farming equipment, mining equipment, military equipment....NONE of which run on electricity LoL. Liberals are lying to you lol. More oil, not less, is needed.
J
The world can't do without oil. The airlines are still at about 50% capacity and Cruise liners haven't started cruising. CVX is not going to die easily especially when Republicans regain control.
r
XOM and CVX both have nice upside potential from here but I think XOM has more. Going with the tiger.
Maybe OPEC and big oil across the globe are going to send a message to the Dem0crumbs and assorted 1ibera1s. You want to get rid of us so bad, we're just going to stop increasing production. Let's see how you do then. We'll be doing great when the price of oil hits $200 a barrel. It's possible that they all could get together when Dem0crumbs and assorted 1ibera1s are in fact trying to end the use of oil. Oil producers have to fight back or disappear. DIAMOND HANDS! I I I I $CDEV $XEC $WES $SM $MTDR $FLNG $SU $OXY $MRO $LPI $KOS $VET $CVX $XOM $SUN $WLL $OAS $EOG $COG $APA
J
We may see $120 this summer ===>>> "It was a strong rebound for traveling this Memorial Day weekend - TSA expected at least 6 million passengers, after Monday it'll be around 7 million. - Friday the TSA reported the highest number of travelers since the pandemic began. - TSA passenger count for today might potentially break the record again, releases tomorrow morning.
Domestic air travel by Americans is nearly recovering to pre-pandemic levels. The airlines and travel sector should get a nice bump this week!"
Brent nudges towards $70 on rosy U.S. data, oil demand outlook Thu, May 27, 2021, 9:33 PM: By Florence Tan SINGAPORE (Reuters) - Oil prices pushed higher on Friday, supported by firm U.S. economic data and expectations of a strong rebound in global fuel demand in the third quarter, while concerns eased about the impact of any return of Iranian supplies.
Brent crude futures for July gained 16 cents, 0.2%, to $69.62 a barrel by 0050 GMT while U.S. West Texas Intermediate crude for July was at $67.17 a barrel, up 32 cents, or 0.5%.
"Oil headed higher on robust U.S. economic data and growing sentiment that if the Iran nuclear deal is revived, it will not include an immediate removal of sanctions and that the oil market will not get quickly flooded with excess supplies," OANDA analyst Edward Moya said in a note.
Brent and WTI are both on track to post weekly gains of 5% to 6% as analysts expect global oil demand to rebound closer to 100 million barrels per day in the third quarter on summer travel in Europe and the United States following widespread COVID-19 vaccination programmes.
Robust economic data from the United States, the world's largest economy and oil consumer, also buoyed risk appetite. The number of Americans filing new claims for unemployment benefits fell to the lowest since mid-March 2020, beating estimates. DIAMOND HANDS! I I I I $CDEV $XEC $WES $SM $MTDR $FLNG $SU $OXY $MRO $LPI $KOS $VET $CVX $XOM $SUN $WLL $OAS $EOG $COG $APA
"Even if Iran is able to add to global supply, Goldman Sachs (NYSE:GS) still feels confident about the oil market." "Even aggressively assuming a restart in July, we estimate that Brent prices would still reach $80 per barrel in fourth quarter 2021," the bank said in a note.
Goldman Sachs sees it now. $80 is in my opinion a conservative estimate.
Warning: Environmental activists may be hazardous to your health.
The IEA (International Energy Agency) and the activists that support it simply don’t understand the dangerous path they’re pursuing.
They see a problem that they want to solve (climate change) using supply and demand and they’ve chosen to attack the SUPPLY side (big oil) with no regard for the demand side (energy for us to survive).
This strategy is appropriate for vices like smoking cigarettes and drinking alcohol (because they’re not required to live) but not for essential commodities like food and energy.
Here, on the east coast of the US. there is an ongoing fuel shortage caused by the shutdown of the Colonial pipeline. Now imagine that the activists get their way and fossil fuels are unavailable because energy companies were forced to go out of business after exploration and extraction were outlawed...
Sure, it’s easy to say that renewables are the solution when the simple reality is that they’re not (yet anyway).
Just to be clear, I fully support green energy and a transition away from fossil fuels as quickly as possible; but, that change MUST be accomplished by reducing the DEMAND for fossil fuels by making alternative, renewable energy more affordable, practical, and easily available.
The activist’s reckless strategy is both foolish (they literally can’t see the forest for the trees) and unwarranted (fossil fuel providers adjust output to meet demand already). And companies which rely upon fossil fuels (and that includes the electric grid) must be able to continue unabated at supplying our modern world’s energy needs until the time those fuels are no longer required (and not one minute before).
Frankly, I’m appalled by the tyrannical approach of these narcissistic pundits: which is analogous to ending world hunger through starvation and death rather than providing new sources of food.
Unfortunately the environmental activists have righteously declared themselves the HAMMER of change and big oil is the NAIL; but, it will be the rest of us who will have to bear the burden of that cross.
U
Gas prices are up. Oil usage is up. Planes, cargo ships, fire trucks, military, const. equip., etc ....don't run on electricity. EV tax credits, windmills, solar panels, etc ..... seems like a crony scam ..... you guys remember the Obama Crush a Clunker ? costs us more in Carbon emissions and dollars to crush those cars VS just leaving things alone. The left is koo koo.
M
Thank god i had the audacity of going big into Chev/Exon/VDE last year 🙌. Feel the summer travel by car will give this sector an even bigger bump
D
Dividends were paid today
S
bought more at $ 108 with dividend money. Thank you CVX
The International Energy Agency (IEA) said in its monthly report that the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, would need to boost output to meet demand set to recover to pre-pandemic levels by the end of 2022.
"OPEC+ needs to open the taps to keep the world oil markets adequately supplied," the Paris-based energy watchdog said.
$SU $CNQ $ENB $COP $BP $OXY $VET $XOM $TOT $CVX $MPC $EOG $CLR $EPD $E $KMI $PSX $HAL $PTR $SNP $WMB $BKR $EC $IMO $CQP $MMP $TRP $XOG
DIAMOND HANDS!
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$CDEV $XEC $SM $MTDR $SU $OXY $MRO $LPI $KOS $VET $CVX $XOM $SUN $WLL $OAS $EOG $COG $APA
Do not run on batteries LoL
I think covid-19 made people Koo Koo.
LoL
Ben Sharples: Tue, June 1, 2021, 8:37 PM
(Bloomberg) -- Oil extended gains after closing at the highest since October 2018 as OPEC+ provided an upbeat assessment of the demand outlook and the prospect of a speedy return of Iranian barrels to the market waned.
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said demand “has shown clear signs of improvement” as the alliance ratified an output boost for July. His Russian counterpart also spoke of the “gradual economic recovery,” with the comments driving West Texas Intermediate up by 2.1% and pushing Brent above $70 a barrel at the close for the first time since 2019.
Adding further support to the market was an indication that talks to revive a 2015 nuclear accord with Iran has been delayed for now. An Iranian official said a deal is now expected to be finalized in August.
Oil is up around 40% this year as the recovery from the pandemic in the U.S., China and parts of Europe boosts the outlook for fuel consumption, despite a Covid-19 resurgence in countries such as India. Global demand may rebound to levels seen before the outbreak in a year, according to the International Energy Agency, signaling a quicker comeback than its previous estimates.
The prompt timespread for Brent was 41 cents in backwardation -- a bullish market structure where near-dated prices are more expensive than later-dated ones. That compares with 9 cents at the start of last week.
OPEC+ ministers agreed Tuesday to press ahead with an increase of 841,000 barrels a day in July, following hikes in May and June, although the group didn’t give any hints on future supply moves. There’s reason to be cautious about the second half of the year, with the outlook dependent on two hard-to-predict factors: the coronavirus and nuclear talks between Iran and the U.S.
Diplomats had hoped to fully restore the nuclear deal before Iran’s June 18 presidential elections, after which the presidency of Hassan Rouhani will wind down. An agreement is expected to result in a lifting of U.S. sanctions and an increase in Iranian oil exports, although there are varying estimate on how much crude could return to the market.
DIAMOND HANDS!
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$CDEV $XEC $WES $SM $MTDR $FLNG $SU $OXY $MRO $LPI $KOS $VET $CVX $XOM $SUN $WLL $OAS $EOG $COG $APA
Avi Salzman: June 2, 2021 11:09 am ET
Prices of commodities like steel and corn have pulled back from the highs they hit last month, but oil has continued to climb, buoyed by signs of increasing travel around the world and new pressures on supply.
Brent crude futures, the global benchmark, were trading 0.4% higher, to $70.56 a barrel, on Wednesday. West Texas Intermediate futures were up 0.3%, to $67.94 a barrel.
Oil has risen for some of the same reasons as other commodities — the speed of the reopening and supply shortages in some areas.
But other factors are also at play that may prolong the oil rally even as some other commodity prices have begun to decline. Morgan Stanley analyst Devin McDermott wrote in a note published Wednesday that political dynamics were likely to cap the growth in oil supply even as demand continues to rise in the years ahead.
The International Energy Agency recently wrote that oil-and-gas companies would have to keep their capital expenditures at or below 2020 levels for the world to achieve net zero carbon emissions by 2050. McDermott expects public company shareholders will demand that companies adhere to this rule. Exxon Mobil (ticker: XOM), Chevron (CVX), and Royal Dutch Shell (RDS. A) all faced reckonings last week over their climate impacts, and the pressure will only grow.
Demand, however, may not drop as much as supply — though there is a robust debate going on about whether demand has already peaked or could keep rising for at least another decade.
Morgan Stanley oil strategist Martjin Rats expects demand will keep rising to 107 million barrels a day by 2033, from 100 million barrels at the start of 2020. To satisfy that increasing demand, Rats expects state-owned oil companies and private firms will have to ramp up production, and oil prices will need to rise to fund that expansion. Currently, public companies account for about half of oil supply. Prices might even have to rise to $80 a barrel to induce private companies and state-owned ones to cover the gap. Rats increased his long-term Brent price target to $60 from $50.
McDermott thinks that different stocks will outperform depending on oil prices. At $60 West Texas crude prices, APA, formerly Apache (APA), Diamondback Energy (FANG), Ovintiv (OVV), ConocoPhillips (COP), and Devon Energy (DVN) look attractive, he says.
At $70, those stocks still look good, as do companies with more financial or operating leverage like Murphy Oil (MUR), Occidental Petroleum (OXY), and Continental Resources (CLR).
DIAMOND HANDS!
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$CDEV $XEC $WES $SM $MTDR $FLNG $SU $OXY $MRO $LPI $KOS $VET $CVX $XOM $SUN $WLL $OAS $EOG $COG $APA
The photovoltaics, which turn sunlight into energy, are typically sandwiched between layers of copolymers. One of the petrochemical building blocks common to many of the copolymers is ethylene—a petrochemical derived from oil and natural gas.
DIAMOND HANDS!
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$CDEV $XEC $WES $SM $MTDR $FLNG $SU $OXY $MRO $LPI $KOS $VET $CVX $XOM $SUN $WLL $OAS $EOG $COG $APA
"It was a strong rebound for traveling this Memorial Day weekend
- TSA expected at least 6 million passengers, after Monday it'll be around 7 million.
- Friday the TSA reported the highest number of travelers since the pandemic began.
- TSA passenger count for today might potentially break the record again, releases tomorrow morning.
Domestic air travel by Americans is nearly recovering to pre-pandemic levels. The airlines and travel sector should get a nice bump this week!"
Thu, May 27, 2021, 9:33 PM: By Florence Tan
SINGAPORE (Reuters) - Oil prices pushed higher on Friday, supported by firm U.S. economic data and expectations of a strong rebound in global fuel demand in the third quarter, while concerns eased about the impact of any return of Iranian supplies.
Brent crude futures for July gained 16 cents, 0.2%, to $69.62 a barrel by 0050 GMT while U.S. West Texas Intermediate crude for July was at $67.17 a barrel, up 32 cents, or 0.5%.
"Oil headed higher on robust U.S. economic data and growing sentiment that if the Iran nuclear deal is revived, it will not include an immediate removal of sanctions and that the oil market will not get quickly flooded with excess supplies," OANDA analyst Edward Moya said in a note.
Brent and WTI are both on track to post weekly gains of 5% to 6% as analysts expect global oil demand to rebound closer to 100 million barrels per day in the third quarter on summer travel in Europe and the United States following widespread COVID-19 vaccination programmes.
Robust economic data from the United States, the world's largest economy and oil consumer, also buoyed risk appetite. The number of Americans filing new claims for unemployment benefits fell to the lowest since mid-March 2020, beating estimates.
DIAMOND HANDS!
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$CDEV $XEC $WES $SM $MTDR $FLNG $SU $OXY $MRO $LPI $KOS $VET $CVX $XOM $SUN $WLL $OAS $EOG $COG $APA
"Even aggressively assuming a restart in July, we estimate that Brent prices would still reach $80 per barrel in fourth quarter 2021," the bank said in a note.
Goldman Sachs sees it now. $80 is in my opinion a conservative estimate.
$SU $OXY $CNQ $ENB $COP $PSX $BP $XOM $CVX $MMP $EPD $LNG $EOG $DVN $FANG $PDCE $WLL $ERF
The IEA (International Energy Agency) and the activists that support it simply don’t understand the dangerous path they’re pursuing.
They see a problem that they want to solve (climate change) using supply and demand and they’ve chosen to attack the SUPPLY side (big oil) with no regard for the demand side (energy for us to survive).
This strategy is appropriate for vices like smoking cigarettes and drinking alcohol (because they’re not required to live) but not for essential commodities like food and energy.
Here, on the east coast of the US. there is an ongoing fuel shortage caused by the shutdown of the Colonial pipeline. Now imagine that the activists get their way and fossil fuels are unavailable because energy companies were forced to go out of business after exploration and extraction were outlawed...
Sure, it’s easy to say that renewables are the solution when the simple reality is that they’re not (yet anyway).
Just to be clear, I fully support green energy and a transition away from fossil fuels as quickly as possible; but, that change MUST be accomplished by reducing the DEMAND for fossil fuels by making alternative, renewable energy more affordable, practical, and easily available.
The activist’s reckless strategy is both foolish (they literally can’t see the forest for the trees) and unwarranted (fossil fuel providers adjust output to meet demand already). And companies which rely upon fossil fuels (and that includes the electric grid) must be able to continue unabated at supplying our modern world’s energy needs until the time those fuels are no longer required (and not one minute before).
Frankly, I’m appalled by the tyrannical approach of these narcissistic pundits: which is analogous to ending world hunger through starvation and death rather than providing new sources of food.
Unfortunately the environmental activists have righteously declared themselves the HAMMER of change and big oil is the NAIL; but, it will be the rest of us who will have to bear the burden of that cross.
Obama Crush a Clunker ? costs us more in Carbon emissions and dollars to crush those cars VS just leaving things alone. The left is koo koo.