• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 12 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 11 hours Hopes Are Dashed For International Oil Companies In North Iraq
  • 16 hours 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 1 hour The United Nations' AGENDA 2030 - The vision for One World Governance ...an article by the famous Dr Robert Malone
  • 2 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 4 days Changing Gazprom ADRs to Russian shares
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Nick Cunningham

Nick Cunningham

Nick Cunningham is an independent journalist, covering oil and gas, energy and environmental policy, and international politics. He is based in Portland, Oregon. 

More Info

Ignore The Hype: Oil Is Rangebound

Investors can be forgiven if they are more puzzled than ever regarding the trajectory of oil prices. The gyrations over the past month have induced a sense of deep despair, followed by a brief period of optimism, only for those hopes to be quickly dashed. With oil edging back up towards $50 again, there are likely fewer people than last month who are willing to buy into the notion that the rally is for real.

A dose of skepticism, in this market, is healthy. Some analysts predict prices will plunge well below $40 while others see them steadily rising to $60 or $70, but there is a much greater probability that oil stays stuck in its current range.

Here’s why.

The extraordinarily rapid rise of U.S. shale production sputtered in June, even as the industry still appears to be expanding. The EIA reported one week’s worth of production declines, while the rig count contracted a bit before rebounding again. The data could be noise…but it could also be a sign that some of the weaker shale players are beginning to struggle with oil prices at $45 and below.

“If oil holds under $45, that would make a difference to us,” James Mayer, CEO of Green Century Resources, a small Texas shale driller, told the Houston Chronicle. Green Century might cancel or delay drilling plans if oil prices remain in the mid-$40s or below.

The same could be true for dozens of other companies. That means that if oil prices stay in the mid-$40s, or fall…




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