• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 11 hours Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 9 hours America's pandemic dead deserve accountability after Birx disclosure
  • 10 hours U.S. Presidential Elections Status - Electoral Votes
  • 3 days Today Biden calls for Summit with Putin. Will Joe apologize to Putin for calling him a "Killer" ?
  • 3 days Fukushima
  • 3 days Biden about to face first real test. Russia building up military on Ukraine border.
  • 2 days CO2 Mitigation on Earth and Magnesium Civilization on Mars – Just Add Water
  • 3 days Joe Biden's Presidency
  • 2 days New Chinese Coal Plants Equal All those in U.S.A
Editorial Dept

Editorial Dept

More Info

Sentiment Vs. Fundamentals: How Weak Are Oil Markets?

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