26 Oct 2016

Oil Price Digest 26-Oct-16

Crude Oil As mentioned, the current upward run seems to have been exhausted as the API data failed to provide cheer to bulls. Crude stocks built by a sizeable 4.75 million barrelsT. Rationally the build was not unreasonable as there was stock floating on the sea last week due to storm activity.  Nevertheless, it was far in excess of the expectations of nearly 2 million barrels. Brent ended the day at $ 50.79 / bbl…

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25 Oct 2016

Oil Price Digest 25-Oct-16

Crude Oil Oil prices appear to be running out of steam.  While there is always the fear that OPEC may adhere to its production cuts, there is tremendous scepticism about its ability to do so.  And when you hear the first notes of discord from Iran (who else?) saying it doesn’t wan’t to cut, it is natural to want to first book profit on a 13-16% rise in profits. We saw some of this in…

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24 Oct 2016

Oil Price Digest 24-Oct-16

Oil Price Digest 24-Oct-16 We unfortunately could not publish this daily blog for a few days as the author was traveling. We resume today Crude Oil Oil ended Friday slightly higher amid speculation that OPEC and Russia will be able to control production but tempered by a double digit rise in count of rigs being deployed in the US. Brent ended the day 41 cents higher at $ 51.78. For the week though it was…

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18 Oct 2016

Oil Price Digest 18-Oct-16

Oil Price Digest 18-Oct-16 Crude Oil Crude Oil ended the day marginally lower on Monday.  WTI closed at $ 49.94 / bbl and Brent closed at $ 51.52 / bbl.  The market appears to have got tired of the story of OPEC production cuts with nothing happening on the ground that would suggest its implementations.  The markets may have settled even lower had not the EIA advised that US shale oil production was expected to…

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17 Oct 2016

Oil Price Digest 17-Oct-16

Oil Price Digest 17-Oct-16 Crude Oil Crude Oil ended the day nearly unchanged on Friday.  Traders seemed to balance the threat of an OPEC production cut against a stronger dollar and an increase in the Baker Rig Count. The Baker Rig Count has been increasing for the last 16 weeks.  This would indicate that more oil is likely to be produced by the US in the near future, a factor which would put pressure on…

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