• 4 minutes What will the future hold for nations dependent on high oil prices.
  • 7 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 12 minutes OPEC Cuts Deep to Save Cartel
  • 15 minutes Venezuela continues to sink in misery
  • 20 mins End of EV Subsidies?
  • 52 mins Maersk's COO statment.
  • 3 hours Citi cuts Apple's price target
  • 4 hours Asian stocks down
  • 3 hours Japan Effectively Bans China’s Huawei, ZTE From Government Contracts, Joining U.S
  • 8 hours China Builds LNG Icebreaker
  • 1 hour USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 1 hour GOODBYE FOREIGN OIL DEPENDENCE!!
  • 10 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 9 hours Price Decline in Chinese Solar Panels
  • 43 mins Oil prices may go up, but will be below $70 a barrel in FY19: Hindustan Petroleum Chairman
  • 8 hours Trump accuses Google Of Hiding 'Fair Media' Coverage of him

Global Energy Advisory – Friday, 26, 2018

Shale

Brent crude touched $71 and WTI hit $66 this week, supported by the latest comments from the energy ministers of Saudi Arabia and Russia, who said after a meeting last weekend that OPEC and Russia planned to leave the framework of their production cut agreement in place after the deal ends. This means there will be a market intervention mechanism ready should the need arise.

Some took these comments to mean the deal could be extended beyond the end of 2018, although both Novak and Al Falih denied this possibility. In any case, the presence of a ready framework for oil market intervention suggests there is now a bigger oil cartel in the market and it is ready to intervene at will to control prices.

The price rally may look sustainable, especially after the EIA reported its tenth weekly inventory draw, but some of the biggest fuel consumers apparently beg to differ. Four major airlines including Delta, American, and United, and Dubai’s Emirates, said this week they had no plans to start hedging fuel deliveries, signaling they are far from worried about oil prices.

Meanwhile, the IMF has warned that despite the latest indications from the global economy that suggest healthy growth this year, a recession may be nearer than many believe. Some sources from the analyst community are in agreement, noting the strongest start of the year for the U.S. stock market and investors’ excessive risk appetite.

Deals, Mergers & Acquisitions

•…

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
-->