• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days The United States produced more crude oil than any nation, at any time.
  • 1 hour Could Someone Give Me Insights on the Future of Renewable Energy?
  • 7 days How Far Have We Really Gotten With Alternative Energy
  • 10 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 10 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
Martin Tillier

Martin Tillier

More Info

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…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News