• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 41 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 1 day Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 10 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 2 days CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 19 hours NordStream2
  • 17 hours OPEC+ Expects Large Oil Glut In Early 2022
  • 1 hour Ukrainian Maidan after 8 years
  • 3 days "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
  • 2 hours Forecasts for Natural Gas
  • 19 hours Big Bounce: Russian gas amid market tightness - new report by Oxford Institute for Energy Studies
Nick Cunningham

Nick Cunningham

Nick Cunningham is an independent journalist, covering oil and gas, energy and environmental policy, and international politics. He is based in Portland, Oregon. 

More Info

Fundamentals Starting to Underpin Oil Price Rally

Friday, May 20, 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. Speculators start to liquidate long bets

(Click to enlarge)

- All of the oil price metrics can’t seem to get on the same page at the same time. A massive increase in net-long speculative bets since the beginning of the year occurred as the supply/demand fundamentals only changed incrementally.
- But just as some of the fundamentals started to substantially improve – in part due to major unexpected outages – oil speculators have started to retreat.
- The record net-long position started to be unwound in early May. Net-long positions for Brent and WTI fell by 43 million barrels for the week ending on May 3, or a roughly 13 percent decline.
- On the other hand, the data on speculative positions is released with a bit of a lag, so the bull run could regain momentum. Huge supply outages in Canada and Nigeria are hard to ignore.
- As Reuters notes, stagnant or falling supply is bumping up against strong demand for crude. As a result, the market contango is shrinking, refining margins are widening, and front-month futures are rising.
- The markets are essentially driving on a road by looking through the rear-view…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News