• 4 minute Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 8 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 15 minutes Oil and Trade War
  • 5 hours Could oil demand collapse rapidly? Yup, sure could.
  • 16 hours Are EVs Safer Than Combustion Engine Vehicles?
  • 2 hours U.S. Withdraws From U.N. Human Rights Council
  • 12 hours What If Canada Had Wind and Not Oilsands?
  • 36 mins Gazprom Exports to EU Hit Record
  • 19 hours Sell out now or hold on?
  • 5 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 2 hours WE Solutions plans to print cars
  • 6 hours EVs Could Help Coal Demand
  • 20 hours Nopec Sherman act legislation
  • 19 hours Migrants: Italy Wants EU Border Agency In Africa, Not At Sea
  • 14 hours Australia mulls LNG import
  • 8 hours Lloyd's of London excludes coal
  • 14 hours Oil and Trade War
  • 15 hours Russia, Saudi Push For Big Hike In Oil Output Despite Iran Opposition
  • 15 hours Oil prices going down
Alt Text

Pullback In Oil Prices Provides An Opportunity

The pullback in oil prices…

Alt Text

PDVSA Could Declare Force Majeure On Oil Exports

Venezuela’s PDVSA might have to…

Alt Text

OPEC Confident Global Oil Demand Will Stay Strong

The OPEC technical panel has…

Editorial Dept

Editorial Dept

More Info

Trending Discussions

Companies Best-Positioned For An Oil Price Rebound

The U.S. oil and gas rig count continues to fall – having plummeted by 74 rigs for the week ending on January 16 – in a clear sign that the contraction will likely persist for some time.

A fresh wave of layoffs and spending cuts were announced this past week. Baker Hughes (NYSE: BHI) said that it would slash 7,000 from its payrolls, for example.

Oil Prices Go Down…And Back Up

As rigs and roughnecks disappear from the oil patch, production will decline. However, it will not decline right away – there tends to be several month lag period between a reduced rig count and slower production. That period of time could be about two to five months, meaning U.S. oil production could begin to feel the pinch in second quarter.

There are a series of other signs that would indicate that oil prices are bottoming out. Although one data point doesn’t confirm a trend, U.S. oil production fell by 6,000 barrels per day during the second week of January. More cutbacks will eventually correct a supply glut.

OPEC’s Secretary-General spoke at the Davos World Economic Forum and said that he thinks prices will stabilize in the $45 to $50 range and then rebound. OPEC is also predicting that low oil prices will stoke demand, which should send prices back up. Early signs from the U.S. reaffirm this view – U.S. gasoline demand is at an all-time high.

Capitalizing on the Rebound

There is a huge opportunity for investors…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News