• 8 minutes U.S. Shale Oil Debt: Deep the Denial
  • 13 minutes WTI @ $75.75, headed for $64 - 67
  • 16 minutes Trump vs. MbS
  • 7 hours Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 15 hours Nuclear Pact/Cold War: Moscow Wants U.S. To Explain Planned Exit From Arms Treaty
  • 15 hours Why I Think Natural Gas is the Logical Future of Energy
  • 3 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
  • 14 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 8 hours Get on Those Bicycles to Save the World
  • 12 hours Iraq war and Possible Lies
  • 1 day Can “Renewables” Dent the World’s need for Electricity?
  • 1 day Satellite Moons to Replace Streetlamps?!
  • 1 day Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 22 hours Long-Awaited Slowdown in China Exports Still Isn’t Happening
  • 9 hours EU to Splash Billions on Battery Factories
  • 1 day Can the World Survive without Saudi Oil?
Alt Text

Oil Prices Rise On Iran, Hurricane Outages

Oil prices recovered on Tuesday,…

Alt Text

Disappearance Of Saudi Journalist Could Rock Oil Markets

The disappearance of Saudi journalist…

Nick Cunningham

Nick Cunningham

Nick Cunningham is a freelance writer on oil and gas, renewable energy, climate change, energy policy and geopolitics. He is based in Pittsburgh, PA.

More Info

Trending Discussions

Have Oil Prices Peaked

Brent recently hit $80 per barrel, which ushered in a flood of predictions for when we might hit $100 per barrel. But Saudi Arabia and Russia just crushed those dreams, with reports suggesting that the two top oil producers could move to allow higher levels of output at the upcoming meeting in Vienna on June 22.

Assuming they do indeed lift output levels, does that mean that the rally is over? Are we in for a sharper price correction? It’s possible. But it’s also possible the market is overreacting. Let me explain.

On the one hand, there is ample evidence that the oil price rally was sentiment driven. Brent prices have rallied nearly 90 percent since bottoming out at $45 per barrel nearly a year ago. The steady climb in prices occurred alongside a record buildup in net-long positioning by hedge funds and other money managers.

Of course, the underlying fundamentals indicate that the market tightened significantly, but record bullish positioning began to look overstretched earlier this year. In fact, some savvy investors started booking profits, selling out of their positions in April. Brent has edged up over the month of May, even as the speculative net-length in the ICE Brent futures market fell back significantly.

(Click to enlarge)

In other words, the smart money was already starting to bet against higher oil prices even as geopolitical fears spread like wildfire over the past month. Speaking of which, much of the premium…

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