• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 8 hours Indonesia Stands Up to China. Will Japan Help?
  • 2 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 1 hour Shale Oil Fiasco
  • 15 hours Might be Time for NG Producers to Find New Career
  • 2 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 18 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 13 hours Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 8 hours Beijing Must Face Reality That Taiwan is Independent
  • 14 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 19 hours China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 2 days US Shale: Technology
  • 2 days Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019

Sentiment Vs. Fundamentals: How Weak Are Oil Markets?

Natural Gas

As investors and market commentators we must always be asking ourselves- what are we missing? This is true when we’re correct on the market and our position is winning. Obviously, it’s true when we’re wrong on the market as well. We’ve been asking ourselves ‘what are we missing?’ a bunch in the last four weeks as Brent crude moved from $75 to $70 despite a.) continued OPEC+ cuts and increased odds of a deal extension in June, b.) an unexpected end to the US waiver program on Iranian crude which has effectively banned the nation’s oil from the global market and c.) the increased threat of hostilities between the US, Saudi Arabia and Iran.

It’s obvious to point to the collapse of the US/China trade deal as keeping a lid on oil prices. After all, global stock markets are sharply lower in May and government bond yields have moved lower as investors have rushed for safety while Washington and Beijing seemed to move farther from a deal than ever. Can’t we just point to US/China relations as the sole cause of oil’s drop? Well, maybe. But it’s always necessary to keep digging for a less obvious trend and it’s wise to keep abreast of lurking risk in the market. On that note, we were particularly interested in an oil-focused piece recently released by the Federal Reserve Bank of Dallas which was focused on the link between crude prices and the break-even prices at the US’s hottest shale producing region.

The…




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