• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 8 minutes The Inconvenient Truth Of Electric Cars
  • 2 mins The Plastics Problem
  • 9 hours Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 2 hours To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
  • 4 hours SHALE MAGIC: Let the oil flow: US to lead oil output growth through 2030: ConocoPhillips chief economist
  • 4 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 54 mins EIA reports 12 mm bbls Inventory draw . . . . NO BIG DEAL . . . because U.S. EXPORTED RECORD 12 MILLION BARRELS DAY OF CRUDE + PETROLEUM PRODUCTS ! ! ! THAT'S HUGE !
  • 9 hours Looks like Trump is putting together a "Real" Coalition to protect Persian shipping lanes. Makes perfect sense. NO Fake "Coalition's of the Willing" UPDATE REUTERS Pompeo "Sentinel Program"
  • 17 mins Its called reality: Economic, policy challenges to make Asia's energy transition painfully slow
  • 21 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 17 hours Hard To Believe: UAE Will Work To Defuse Middle East Tension
  • 11 hours Cap and trade: What could Oregon’s carbon policy cost you?
  • 4 hours On the hobby side of things
  • 22 hours The Strait of Hormuz is the world’s most important oil transit chokepoint
Alt Text

The Last U.S. Oil Major In Venezuela

Chevron is the last U.S.…

Alt Text

A Worrying Sign For Global Oil Demand

It looks like we are…

Matt Smith

Matt Smith

Taking a voyage across the world of energy with ClipperData’s Director of Commodity Research. Follow on Twitter @ClipperData, @mattvsmith01

More Info

Premium Content

Dollar Weakness Fails To Stimulate Oil Prices

Seventy-four years after the birth of Curtis Mayfield, and oil prices are struggling to move on up, despite a wilting dollar due to a shocker of a U.S. jobs report. The combo of yesterday’s bearish-tilted OPEC meeting and today’s weak nonfarm payrolls is ushering black gold, Texas tea away from fifty-dollardom once more. Hark, here are five things to consider in oil markets today:

1) Wowee. What an ugly jobs report. Only 38,000 jobs were created last month, well below the consensus of 164,000, and the worst since September 2010. A drop in the unemployment rate to 4.7% was of little (well, no) solace. The expectation of an interest rate hike next week has been well and truly swept off the table, while the likelihood of one coming down the pike next month is waning.

2) In terms of yesterday’s OPEC meeting, much is being made of Iranian oil minister Bijan Zanganeh’s role within the cartel, as Iran aims to swing the balance of power away from Saudi Arabia. While Saudi’s new oil minister al-Falih is declaring how Saudi’s targeting of market share is working, Iran has been busy quashing a proposal to reintroduce production limits.

Iran’s power within OPEC is set to rise in tandem with its oil production. As we can see from our ClipperData, Iran is walking the walk, as well as talking the talk: oil loadings in May were at 2.5 million barrels per day, over 60% higher than year-ago levels.

Nonetheless, while the percentage increase in Saudi’s crude oil loadings year-to-date may pale in comparison to Iran’s +40% spike, exports are still up a whopping 725,000 bpd…only 11% higher than year-ago levels. It’s a market share battle royale. Related: Why $50 Oil Makes Sense

3) Below is a nifty little graphic from the IEA today; electric car sales surpassed one million last year, finishing at 1.26 million units sold. As infrastructure surges for electric vehicles, market share for them has risen above 1% of total penetration in seven countries.

(Click to enlarge)

The global presence of 80% of electric vehicles are in four countries: China, U.S., Netherlands and Norway. (China is the leader, leapfrogging the U.S. last year). In terms of percentages, Norway has the highest share of electric cars at 23%, with the Netherlands second at 10%. Related: Could A New Type Of Bike Solve India’s Electricity Problems

4) As we have discussed here before, the recent rally in crude has not been in isolation. As Bloomberg’s commodity index illustrates below, commodities in general are close to being in a bull market – led by soybeans and zinc. Despite the index being 50% its 2011 high, it is close to rallying 20% since the beginning of the year on supply cuts and weather worries.

(Click to enlarge)

5) Finally, the mighty Abudi Zein and myself will present an opinionated-and-hard-data Oil Outlook in Houston (6/8) and New York City (6/9) next week.

When will China stop buying? How long will U.S. production fall? Is India growing as fast as many think? Who will benefit from the coming rally? We only have about a dozen seats left! Click here for more details and to register.

By Matt Smith

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




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