• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 9 hours Why Wind is pitiful for most regions on earth
  • 5 hours During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 2 mins In a Nutshell...
  • 55 mins Sources confirm Trump to sign two new Executive orders.
  • 2 days Joe Biden to black radio host, " If you don't vote for me you ain't black". That's our Democratic Party nominee ?
  • 3 days Happy 4th of July!
  • 2 days Putin Paid Militants to Kill US Troops
  • 3 days Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 3 days Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 3 days Victor Davis Hansen on Biden's mental acuity " . . unfit to serve". With 1 out of 5 Democrats admitting it. How many Dem's believe it but will not admit it?
  • 15 hours Coronavirus hype biggest political hoax in history
  • 3 days Apology Accepted!
  • 4 days The Political Genius of Donald Trump

A Significant Fundamental Shift for Oil Amongst All of the Noise

It has been another wild week for those of us that track and trade the oil market. It started with a two day decline of nearly 15 percent and then over the next two days oil futures recovered almost all of that before turning tale again on Thursday afternoon. Given the degree of volatility we have experienced since the start of the year it is tempting to look at this week of just more of the same, but there is a difference. One fundamental thing changed this week that has shifted the long term outlook and it came from outside the oil market.

(Click to enlarge)

The turnaround in the futures and oil’s massive, roughly 10 percent spike on Wednesday, even in the face of yet more bad news on the inventory front, came as the result of two factors. The most quoted reason, rumors of some kind of emergency meeting involving OPEC and non-OPEC oil producing countries, was actually the least significant from a long term perspective.

There have been similar rumors several times over the last few months, but so far nothing has come of them. Even if this time is different, though, it is easy to overestimate the importance of such a meeting as neither of the World’s two largest oil producers would be a part of it. The biggest, the U.S. doesn’t make centralized decisions about oil but rather leaves that to the market and the second biggest, Saudi Arabia clearly indicated their contempt for the idea by immediately cutting prices and increasing production…




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