• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 2 hours In a Nutshell...
  • 1 min Sources confirm Trump to sign two new Executive orders.
  • 4 hours Why Wind is pitiful for most regions on earth
  • 10 hours During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 2 days Putin Paid Militants to Kill US Troops
  • 2 days Joe Biden to black radio host, " If you don't vote for me you ain't black". That's our Democratic Party nominee ?
  • 3 days Happy 4th of July!
  • 3 days Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 4 days Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 4 days Victor Davis Hansen on Biden's mental acuity " . . unfit to serve". With 1 out of 5 Democrats admitting it. How many Dem's believe it but will not admit it?
  • 21 hours Coronavirus hype biggest political hoax in history
  • 3 days Apology Accepted!
  • 4 days The Political Genius of Donald Trump

Expect More Bullish News For Oil This Month

Last month we wrote a series of notes arguing that risks were either skewed sideways or slightly higher for oil primarily based on the ideas that the US central bank was turning dovish and OPEC+ cuts would tighten physical supply/demand balances. These themes are still the most important sources of risk in the market and we’ve seen key news updates on both items over the last week.

On the central bank front, the Fed’s statement from its recent FOMC meeting took another step in the dovish direction remarking the committee would remain patient in their pursuit of higher interest rates. The overall language of the note took a more accommodative look at employment and inflation trends and seemed increasingly in tune with the idea that the economy needs to be able to run further before policymakers apply the brakes of higher rates. The bankers also noted that they would take slow approach in deciding on whether to continue shrinking their balance sheet. (Our assessment is that Fed balance sheet tightening was a critical driver of stock market and oil prices weakness in 4Q’18.) US Fed officials could ultimately play as important a role as OPEC in shaping oil prices in 2019 and for now they’re clearing the path to higher prices. This could become especially true if US government shutdown, US/China trade or Brexit contagions rise as the central bank could swing even more dovish and work to push asset prices higher.

On the OPEC+ side, January production…




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