• 8 minutes U.S. Shale Oil Debt: Deep the Denial
  • 13 minutes WTI @ $75.75, headed for $64 - 67
  • 16 minutes Trump vs. MbS
  • 27 mins Despite pressure about Khashoggi's Murder: Saudi Arabia Reassures On Oil Supply, Says Will Meet Demand
  • 2 hours Dyson Will Build Its Electric Cars in Singapore
  • 2 hours China Opens Longest Mega-Bridge Linking Hong Kong to Mainland
  • 14 hours Knoema: Crude Oil Price Forecast: 2018, 2019 and Long Term to 2030
  • 24 mins Why I Think Natural Gas is the Logical Future of Energy
  • 4 hours Satellite Moons to Replace Streetlamps?!
  • 4 hours Can “Renewables” Dent the World’s need for Electricity?
  • 29 mins How Long Until We Have Working Nuclear Fusion Reactor?
  • 53 mins These are the world’s most competitive economies: US No. 1
  • 2 hours The Balkans Are Coming Apart at the Seams Again
  • 15 hours EU to Splash Billions on Battery Factories
  • 14 hours Get on Those Bicycles to Save the World
  • 10 hours Merkel Aims To Ward Off Diesel Car Ban In Germany
Alt Text

Goldman Sachs: This Is The Next Big Risk For Oil

Goldman Sachs commodities expert Jeffrey…

Alt Text

Can We Expect A Rebound Rally Next Week?

Despite recovering somewhat on Friday,…

Alt Text

Oil Prices Subdued, But For How Long?

Oil prices may have closed…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Another False Rally in Oil

Most people who study energy markets believe that, at some point, oil will recover, at least partially. Not even the most bullish observers see $110/Barrel oil returning in the foreseeable future but a bounce back to around $50 is a common prediction. Those predictions got a lot of airing this week as oil bounced off of the recent lows in the mid-$20s, but a look at the reasons for that bounce and the fundamental situation suggests that this may be just another false dawn, and at least one more test of the lows will be needed before there can be a meaningful, sustainable recovery in oil.

The main thing that sparked the rise was the revelation at the end of last week by the UAE Oil Minister that some OPEC countries were talking about the supply situation. As it became known that Russia and, more importantly, Saudi Arabia were involved it looked like something of real significance. There has been so much talk of the complete collapse of OPEC that any hint of agreement was seen as a positive for the commodity.

That sentiment was so strong that, even when the limited and somewhat disappointing details of the proposed agreement were released this week the rally continued. The fact that even the Iranians agreed to the proposed production freeze at current levels added fuel to the fire. In reality, though, a freeze at current levels does nothing to alleviate the pressure on oil. We are at record high production levels, and it will take some time for global demand, which…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





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