• 6 hours PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 8 hours Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 10 hours Syrian Rebels Relinquish Control Of Major Gas Field
  • 11 hours Schlumberger Warns Of Moderating Investment In North America
  • 12 hours Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 13 hours Energy Regulators Look To Guard Grid From Cyberattacks
  • 14 hours Mexico Says OPEC Has Not Approached It For Deal Extension
  • 16 hours New Video Game Targets Oil Infrastructure
  • 17 hours Shell Restarts Bonny Light Exports
  • 18 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 1 day Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 1 day British Utility Companies Brace For Major Reforms
  • 1 day Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 1 day Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 2 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 2 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 2 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 2 days Rosneft Signs $400M Deal With Kurdistan
  • 2 days Kinder Morgan Warns About Trans Mountain Delays
  • 2 days 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
  • 3 days Conflicting News Spurs Doubt On Aramco IPO
  • 3 days Exxon Starts Production At New Refinery In Texas
  • 3 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 4 days China To Take 5% Of Rosneft’s Output In New Deal
  • 4 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 4 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 4 days VW Fails To Secure Critical Commodity For EVs
  • 4 days Enbridge Pipeline Expansion Finally Approved
  • 4 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 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
  • 5 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 5 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 5 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 5 days Aramco Says No Plans To Shelve IPO
Alt Text

Oil Prices Rise Amid Falling U.S. Rig Count

Oil prices inched higher on…

Alt Text

Oil Prices Spike On Middle East Tensions

Oil prices jumped upwards on…

Alt Text

Aggressive OPEC Pushes Oil Prices Up

Oil prices are once again…

Oil Prices Edge Lower As OPEC Nears Record Output

Oil Prices Edge Lower As OPEC Nears Record Output

Forty-two years to the day after the filming of “Jaws” began (in Martha’s Vineyard, Massachusetts), and the bears are smelling blood in the water for a pullback (perhaps driven by this news from OPEC?). With certain countries closed for a bank holiday today (May day! May day!), here are five things to consider in the oil market:

1) With a new month on deck, we get a new onslaught of economic data, and specifically, global manufacturing data. China kicked things off over the weekend, with a below-consensus print on its official PMI manufacturing number, showing marginal expansion at 50.1 (down from 50.2 last month and below the expectation of 50.4). Related: Oil Rallies On As Traders Ignore Red Flags

Elsewhere, Japan’s manufacturing PMI was better than expected, but still showed contraction, while the Eurozone PMI was above consensus, growing, and also above last month. Both France and Germany were below par, but were offset by strength from Spain and Italy. Brazil’s manufacturing print was a hugely huge miss, now down to a new multi-year low, while the U.S. PMI has showed just a minor miss, but holding in expansion at 50.8.

2) The latest CFTC data show net-longs held by speculators such as hedge funds have increased to their highest level in a year, as short positions have dropped to a 10-month low. Once again, this has been driven by a ‘less bearish’ stance, as opposed to ‘mo’ bullish’ one, with both long and short positions shrinking. Shorts shrank by 6.9 percent, while longs slipped 0.5 percent.

(Click to enlarge) Related: Why Canada’s Oil Industry May Never Be the Same

3) We can see in our ClipperData that Argentina is seeing crude oil loadings ramping up, encouraged by a newly-announced government subsidy. As long as international oil prices remain below $47.50/bbl, the government is paying $7.50/bbl to oil exporters. With Argentina’s economy expected to shrink this year, this presents an opportunity to for the nation’s producers to ship out excess crude:

(Click to enlarge)

Argentina crude oil loadings (source: ClipperData) Related: Massive Oil Theft By Pirates Costs Nigeria $1.5 Billion Every Month

4) Currency movements continue to push and prod crude prices around. While the euro rallies above 1.15 for the first time since last August, it is joined in strength by the yen. Hence, the U.S. dollar index is weakening again – not surprisingly to the lowest since last August. The weaker dollar continues to backstop crude prices from a more severe sell-off.

(Click to enlarge)

5) Finally, Halliburton and Baker Hughes has announced that it is calling off its merger – which was valued at one point at ~$35 billion. Opposition from regulators has been to blame for the breakdown. Halliburton has said that it will pay a $3.5 billion breakup fee to Baker Hughes as part of the conditions of the merger agreement.

By Matt Smith

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Matt on May 02 2016 said:
    Where was the OPEC data to substantiate the headline?
  • alfa on May 02 2016 said:
    There's no connection between the title and the content.
    And the first paragraph is a WoT as usual.

Leave a comment




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