• 8 minutes U.S. Shale Oil Debt: Deep the Denial
  • 13 minutes WTI @ $75.75, headed for $64 - 67
  • 16 minutes Trump vs. MbS
  • 3 hours Despite pressure about Khashoggi's Murder: Saudi Arabia Reassures On Oil Supply, Says Will Meet Demand
  • 4 hours Dyson Will Build Its Electric Cars in Singapore
  • 4 hours China Opens Longest Mega-Bridge Linking Hong Kong to Mainland
  • 1 hour Why I Think Natural Gas is the Logical Future of Energy
  • 1 hour The Balkans Are Coming Apart at the Seams Again
  • 51 mins How Long Until We Have Working Nuclear Fusion Reactor?
  • 7 hours Satellite Moons to Replace Streetlamps?!
  • 3 hours These are the world’s most competitive economies: US No. 1
  • 6 hours Can “Renewables” Dent the World’s need for Electricity?
  • 3 mins World to Install Over One Trillion Watts of Clean Energy by 2023
  • 12 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
  • 54 mins Iraq war and Possible Lies
  • 7 hours Aramco to Become Major Player in LNG?
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Trending Discussions

Why Crude Oil Producers Will Outperform in 2013

I view oil through a 25-year career of daily engagement in the futures markets.  It’s not the standard Wall Street view.

I can’t describe how all that experience comes together but I CAN show you a few of the commodity factors that I look at that others don’t  - making you more capable in understanding the energy sector, no matter what part of it you’re interested in. 

One of the less discussed but critical factors impacting the trajectory of oil prices are oil financial factors. 

Oil is priced physically at many points on the globe – and each price point is different, just like the same house would be priced differently depending on where you were.  But oil is also tied FINANCIALLY to the benchmark prices funneled through the exchanges that handle forwards and futures, and those prices are what really set the physical prices around the globe. 

Take our current circumstance: Global oil production is up about 800mm barrels a day in 2012 and demand is up perhaps 200-250mm barrels less than that.  That would imply an increasing surplus and why you’ve seen many oil analysts predict lower prices this year –BofA even suggested $50 a barrel as possible for 2013. 

Here’s why I think it won’t happen.

Two things are feeding into the financial price point for Brent oil traded at the Intercontinental exchange (ICE) that make a deeply dropping price unlikely…

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