• 30 mins Shell Restarts Bonny Light Exports
  • 2 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 8 hours Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 13 hours British Utility Companies Brace For Major Reforms
  • 17 hours Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 19 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 20 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 21 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 22 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 23 hours Rosneft Signs $400M Deal With Kurdistan
  • 1 day Kinder Morgan Warns About Trans Mountain Delays
  • 1 day India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 2 days Exxon Starts Production At New Refinery In Texas
  • 2 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 3 days Enbridge Pipeline Expansion Finally Approved
  • 3 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 3 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 4 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 4 days Aramco Says No Plans To Shelve IPO
  • 7 days Trump Passes Iran Nuclear Deal Back to Congress
  • 7 days Texas Shutters More Coal-Fired Plants
  • 7 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 7 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 7 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
  • 8 days Renewable Energy Startup Powering Native American Protest Camp
  • 8 days Husky Energy Set To Restart Pipeline

Breaking News:

Shell Restarts Bonny Light Exports

Alt Text

Kobe Steel Scandal Could Rattle Nuclear Industry

The scandal at Japan’s Kobe…

Alt Text

Corbyn Seeks To Renationalize Britain’s Utilities

Jeremy Corbyn wants to renationalize…

Alt Text

With A World Awash In Oil, Kazakhstan Faces Fuel Crisis

Kazakhstan is struggling with a…

Is This The Beginning Of A Longer Oil Price Rally?

Is This The Beginning Of A Longer Oil Price Rally?

To celebrate Pee Wee Herman’s 63rd birthday, markets are having their own big adventure today. Overnight equity markets have been racing higher, catching up with yesterday’s effervescent rally in the US. Just as we saw a vicious cycle of selling earlier in the week, positive sentiment is traveling across the time zones like a game of pass the parcel. Risk aversion exits stage-right (hey ho, the VIX is dead, the wicked VIX is dead…), and the fears from earlier in the week are seemingly forgotten. Hum dee dum.

The crude complex is getting swept up in this optimism and indulging in a decent rally, even though fundamentals remain soft – a view affirmed by yesterday’s EIA data. In terms of economic data, Eurozone money supply (hark, ECB President Mario Draghi’s favorite chart, apparently) increased at its quickest YoY rate in six years, up 5.3%.

Across the pond, here in the US we saw jobless claims dip for the first week in five, coming in at 271k (versus 274k expected); good news. Further good news has arrived via an updated print for US GDP for the second quarter, which showed economic growth of 3.7% QoQ, above both consensus of +3.2% and the initial print of +2.3%. Related: How To Profit From Crashing Oil Markets

US GDP Q2 preliminary (source: Investing.com)

Taking a look at more crude specific stuff, yesterday’s EIA report highlighted that total inventories of crude oil and refined products reached a record of 1.283 billion barrels. This comes amid a backdrop of US crude stockpiles potentially reaching a record 500 million barrels this fall should US production continue to show a shallow correction, while a deep refinery maintenance season this fall would mean refinery demand would fail to mop up enough of the ongoing supply glut. Related: Some Small But Welcome Relief For WTI

Despite the whiff of optimism in broader markets in the last, ooh, 18 hours, it’s not all wine and roses in commodity markets; the recent rout from copper to crude has served to shine a greater light on the financial frailties within these markets. Debt levels for the top ten largest mining companies are close to an all-time high at $145 billion, while profits are set to come in at their lowest since 2009.

Yesterday’s deal betwixt oil services company Schlumberger and oil equipment company Cameron is indicative of a wave of consolidation that is underway in the oil and gas industry; one which is unlikely to have crested yet given the deterioration in recent market conditions. Hark, global energy M&A is riding high: Related: Why Today’s Oil Bust Is Not Like The 1980s

By Matt Smith

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • avenger426 on August 28 2015 said:
    A bunch of oil guys are walking around with little woodys. The economy sucks and big oil and the speculators are to blame. High oil = continued decline. There is no scenario where high oil will drive a recovery. Basic economics. The alternative energy sources are to far along to quit now. Oil and it's relevance are going to go down. Oil won't go away, but 10 years from now, oil will be back to being a low priced commodity.
    Big oil and the speculators greed are their own worst enemy. What a joke.

Leave a comment




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