• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 12 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 4 hours Visualizing How Much Oil Is In An Electric Vehicle (Hint: a heckuva lot)
  • 4 hours Theresa May to Step Down
  • 5 hours Look at the LONGER TERM bigger picture of international oil & gas. Ignore temporary hiccups.
  • 15 hours Total nonsense in climate debate
  • 16 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 15 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 18 hours Will Canada drop Liberals, vote in Conservatives?
  • 19 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 19 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 15 hours Apple Boycott in China
  • 11 hours Australian Voters Reject 'Climate Change' Politicians
  • 2 hours Why is Strait of Hormuz the World's Most Important Oil Artery
Alt Text

The Overlooked Factor That Could Send Oil To $50

Oil markets have enjoyed a…

Alt Text

Middle East Tensions Put Oil Markets On Edge

Oil markets continue to be…

Alt Text

The 2 Energy Giants Reshaping The Middle East

Typical crude oil producers such…

Matt Smith

Matt Smith

Taking a voyage across the world of energy with ClipperData’s Director of Commodity Research. Follow on Twitter @ClipperData, @mattvsmith01

More Info

Trending Discussions

Oil Prices Gain As Rumors On OPEC Cut Continue To Circulate

Two hundred and fifty-eight years after mustard was first advertised in the U.S., and the crude complex is looking hot to trot once more.

U.S. equity, bond and commodity markets are closed today in observation of Presidents Day, but electronic trading is open for black gold, Texas tea – and things are looking up. After last week’s torrid equity sell-off, Asian markets have finished mostly higher overnight. The return of risk appetite / hopes of further stimulus is combining with an ongoing bout of short-covering to propel crude prices higher once more. On this mostly market-closed Monday, let’s take a look at five things to consider:

• Overnight economic data was weak. Chinese equities opened for the first time since the Lunar New Year, and were welcomed in by some considerably disappointing trade data. Exports fell by 11.2 percent year-on-year (versus -1.9 percent expected) while imports dropped 18.8 percent YoY (versus -0.8 percent expected). This means China has now reached a new record trade surplus at $63.29 billion. Related: The Hidden Agenda Behind Saudi Arabia’s Market Share Strategy

Chinese trade surplus reaches a record (source: investing.com)

• Meanwhile, preliminary GDP data show the Japanese economy contracted in Q4 for the fourth time in seven quarters. It shrank by 1.4 percent, worse than the 1.2 percent drop expected, as both consumer spending and exports declined. Bad news also came in the form of industrial production, which fell 1.7 percent versus an expected 1.3 percent drop for December. Related: A Market Collapse Is On The Horizon

• On Friday we discussed three reasons why OPEC was highly unlikely to cut production. This has been affirmed by developments today; after we pointed out that our ClipperData showed January loadings up 75 percent YoY for Iran, news comes that it is sending its first cargo into Europe since 2012. And while we continue to see rising production from Iraq, we have also heard from Nigeria’s Federal Government that it is committed to boosting production this year to 2.5 million barrels per day, from a current level of ~2.3 mn bpd.

• The Chinese General Administration of Customs in Beijing affirmed something which we have been highlighting from our ClipperData: that Chinese crude oil imports dropped dramatically in January. Customs data showed imports dropped 20 percent on December’s volume, pointing to lesser refining demand for the drop. Refining operating rates dropped to 77 percent in December from 79 percent in the month prior.

• Finally, the latest CFTC data show that speculative long positions in WTI last week reached their highest level since June. Short positions dropped by 2.1 percent: Related: Why Today’s Oil Bust Pales In Comparison To The 80’s

By Matt Smith

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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