• 6 minutes Can the World Survive without Saudi Oil?
  • 10 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 15 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 2 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 2 hours WTI @ $75.75, headed for $64 - 67
  • 1 hour Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 2 hours U.S. - Saudi Arabia: President Trump Says Saudi Arabia's King Wouldn't Survive "Two Weeks" Without U.S. Backing
  • 19 mins Iranian Sanctions - What Are The Facts?
  • 14 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 14 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 14 hours China Thirsty for Canadian Crude
  • 1 hour EU to Splash Billions on Battery Factories
  • 16 hours Threat: Iran warns U.S, Israel to expect a 'devastating' revenge
  • 15 hours Two Koreas: U.N. Command Wrap Up First Talks On Disarming Border
  • 14 hours Shell, partners approve huge $31 billion LNG Canada project. How long till Canadian Federal government Environmentalates it into the ground?
  • 1 hour Superhumans
Editorial Dept

Editorial Dept

More Info

Trending Discussions

Fundamentals Point To Higher Oil Prices…But is that Enough?

Oil rig

Friday, June 17, 2016

In the latest edition of the Numbers Report, we’ll take a look at some of the most interesting figures put out this week in the energy sector. Each week we’ll dig into some data and provide a bit of explanation on what drives the numbers.

Let’s take a look.

1. A repeat of 2015 oil price rally?

(Click to enlarge)

- In 2015 oil prices rallied in the first half of the year only to fall back again. There are concerns that this year’s rally could run out of steam too.
- The 2016 oil price rally has lasted longer than the 2015 rally, 140 days in counting vs. the 2015 total of 112 days.
- Oil prices gained 19 cents per day on average during the 2015 rally, similar to the 18 cents/day rally on average this year.
- The fear is that speculators, once again, have bid up prices higher than is justified. The supply outage in Canada is temporary, so more production will start coming back online. Plus the rig count in the U.S. has ticked up and companies will start working through the backlog of drilled but uncompleted wells.
- Prices are on much sounder footing in 2016 compared to last year as the fundamentals look much stronger. But there is no guarantee the rally will persist.

2. Oil speculators pause as rig count rises

- Speculators backed off their bullish positions for the week ending on June 7. Two consecutive weeks of rig count increases raised the prospect…

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