• 3 hours UK On Track To Approve Construction of “Mini” Nuclear Reactors
  • 7 hours LNG Glut To Continue Into 2020s, IEA Says
  • 9 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 12 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 14 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 15 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 4 days New Video Game Targets Oil Infrastructure
  • 4 days Shell Restarts Bonny Light Exports
  • 4 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 5 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 5 days Rosneft Signs $400M Deal With Kurdistan
  • 5 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 6 days Conflicting News Spurs Doubt On Aramco IPO
  • 6 days Exxon Starts Production At New Refinery In Texas
  • 6 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 7 days VW Fails To Secure Critical Commodity For EVs
  • 7 days Enbridge Pipeline Expansion Finally Approved
  • 7 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 7 days OPEC Oil Deal Compliance Falls To 86%
Alt Text

Oil Prices Rise Amid Falling U.S. Rig Count

Oil prices inched higher on…

Alt Text

300,000 Bpd Offline As Kurdistan Conflict Continues

The ongoing conflict in Iraqi…

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

Oil Prices Tumble As Dollar Reaches One Year High

offshore rigs

As the U.S. dollar pushes on to the highest level in a year, crude is correspondingly getting crushed today. While some may suspect the oil sell-off is due to a lack of confidence in an OPEC production cut at the end of the month, the reality is that the gale-force headwinds provided by a super-strong dollar are too much to take. Hark, here are five things to consider in oil markets today:

1) While dollar strength explains today's sell-off, the chart below presents a simple but solid argument for the weakness in crude over the last two years: rising OPEC production.

And despite the OPEC meeting looming (hark, two weeks and counting down), OPEC producers are continuing to put a record amount of oil onto the market. As we discussed on Friday, Iranian exports have clambered above 3 million barrels per day for the first time since sanctions were lifted - although we suggest this could be driven by floating storage being drawn down as much as it is by increasing output.

That said, Iranian President Hassan Rouhani formally opened the West Karoun oil fields over the weekend, which are said to have swiftly increased production to 250,000 bpd. Rouhani also expressed oil production west of Karoun must reach one million barrels per day. Doesn't sound like Iran is cutting any time soon.

(Click to enlarge)

2) While much is being made of record production and exports from OPEC, it should also be noted that deliveries to Asia are also at a record pace.

(Click to enlarge)

3) Bearishness has shown up with a vengeance in financial positioning. The latest ICE data show that hedge funds cut their net long positions by 80 million barrels to 266 million bbls last week, with long positions shrinking 24mn bbls, and shorts increasing by 56mn bbls. CFTC data has been delayed due to Veterans' Day.

(Click to enlarge)

4) The graphic below is from a WSJ piece today which highlights that although electric vehicles are growing, they will still account for less than 1 percent of the 83 million total light vehicle sales expected this year.

Progress is lumpy, however. While the U.S., China and Europe are seeing strong investment, Japan has slashed its targets for electric vehicles and charging stations in half - to one million of each by 2020.

(Click to enlarge)

By Matt Smith

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Jack Ma on November 14 2016 said:
    Oil is not tumbling really in fact it is up.

    Are you sure you posted the right article?

    Warmest regards

Leave a comment




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