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the bounce is over for Crude oil.
http://mystocksinvesting.com/commodity/crude-oil-brent/crude-oil-dead-cat-bounce-over-and-down-trend-continues/
http://mystocksinvesting.com/commodity/crude-oil-brent/crude-oil-dead-cat-bounce-over-and-down-trend-continues/
Earlier we mentioned " US Stockpile dropped but US output increases
Daily US production hits 9.3mio barrels a day, nearing the historical high of 9.6mio in 2015.
Production is increasing and stockpile is drawn down, it means that spot oil for delivery (stockpile drawn down) is technically more profitable than long-dated futures contract (cheaper).
Looks like it is true the US shale producers are the one who heavily shorted the longer-dated futures contract
Daily US production is scheduled to hit 9.5mio barrels a day and OPEC needs to reach a binding agreement with Russia.
Daily US production hits 9.3mio barrels a day, nearing the historical high of 9.6mio in 2015.
Production is increasing and stockpile is drawn down, it means that spot oil for delivery (stockpile drawn down) is technically more profitable than long-dated futures contract (cheaper).
Looks like it is true the US shale producers are the one who heavily shorted the longer-dated futures contract
The US shale producers used the price spike that Opec triggered earlier this year to lock-in revenues for 2017, 2018 and, in some cases, even 2019.
With their financial future relatively secure, they started deploying rigs. Since the count of active rigs in the US reached a low last, producers have added an average seven units per week, the strongest recovery in 30 years.
Source: http://gulfnews.com/business/sectors/energy/in-fight-against-us-shale-oil-opec-risks-lower-for-longer-1.2026645
With their financial future relatively secure, they started deploying rigs. Since the count of active rigs in the US reached a low last, producers have added an average seven units per week, the strongest recovery in 30 years.
Source: http://gulfnews.com/business/sectors/energy/in-fight-against-us-shale-oil-opec-risks-lower-for-longer-1.2026645
Carbon Emissions-Based Vehicle Scheme(CEVS) is penalizing diesel vehicles. Most diesel passenger cars gives 700-1000km mileage per full tank. You don' t get that kind of mileage from petrol vehicles. Reducing the traffic jam at causeway is probably a more cost-effective way to reduce carbon emission in Singapore.
Cannot convince, confuse.
MarcPh ( Date: 08-May-2017 10:22) Posted:
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Oil prices rise on Saudi export cuts to Asia, report of falling US stockpiles
http://www.cnbc.com/2017/05/09/oil-prices-rise-in-asia-in-expectation-of-aramco-supply-cut.html
Confusing as ever:
- US Stockpile dropped but US output increases
- Lower Saudi exports to Asia but is it due to weaker demand?
OPEC is not united, they need to get in the act.
Actually come think of it, what does the Saudis want?
Are they plotting for higher oil prices for Aramco' s world' s largest IPO. But oil prices sank to 6-months low.
Or are they plotting for weaker oil prices to destroy the shale producers?
Oil up 2.5% in morning trades of the new week after Iran and Saudi Arabia threatened each other with war.
Quote - Iran will hit back at most of Saudi Arabia with the exception of Islam' s holiest places if the kingdom does anything " ignorant" , Tehran' s defense minister was quoted as saying on Sunday after a Saudi prince threatened to move the " battle" to Iran.
" If the Saudis do anything ignorant, we will leave no area untouched except Mecca and Medina," Iranian Defence Minister Hossein Dehghan was quoted by the semi-official Tasnim news agency as saying. http://www.reuters.com/article/us-iran-saudi-minister-idUSKBN1830Y7