• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 5 hours Oil prices going Up? NO!
  • 15 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 14 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 13 mins The Tony Seba report
  • 20 hours Oil prices going down
  • 23 hours Could oil demand collapse rapidly? Yup, sure could.
  • 1 hour Saudi Arabia turns to solar
  • 13 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 2 days Oil Buyers Club
  • 7 hours Kenya Eyes 200+ Oil Wells
  • 7 hours Are Electric Vehicles Really Better For The Environment?
  • 2 days Gazprom Exports to EU Hit Record
  • 2 days Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 22 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 days Could Venezuela become a net oil importer?
  • 21 hours Tesla Closing a Dozen Solar Facilities in Nine States
Alt Text

Brent Breaks $80 On Flurry Of Bullish News

Brent oil briefly broke the…

Alt Text

This Giant Oil Trader Sees Upside For Oil Prices

While many oil industry executives…

Alt Text

$70 Oil Could Spark An Offshore Oil Boom

As geopolitical risk pushes oil…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

Oil Prices Continue Plunging As Speculators Rush For The Exit

Market speculators

After having dipped 5 percent on Wednesday, oil prices continued plunging on Thursday by more than 2 percent, as speculators have started exiting the nearly record long positions in oil futures that they had amassed.

As of 11:54 AM (EST), WTI Crude was trading down 2.27 percent at US$49.14, while Brent was down 2.09 percent at US$52.00.

Having traded in a tight range with low volatility for three months, oil prices are now breaking loose, and WTI is testing the US$49 floor, after it dipped below US$50 for the first time since December. The volatility could create a sense of panic and prompt even more speculators rush to liquidate their long positions, according to The Street.

“It’s a combination of an overhang of (speculative) length and the overhang in inventories ... and the other thing unnerving the market is rapid growth in U.S. crude production,” Andrew Lebow, senior partner at Commodity Research Group in Darien, Connecticut, told Reuters on Wednesday.

Apart from the run for exit from the massive long positions, oil prices were further dampened by the huge U.S. crude oil inventories and rising U.S. crude production and rig count.

Until very recently, OPEC’s supply-cut agreement was putting a floor under the oil prices while U.S. shale capped large price gains. Now the tight range in which oil was trading is unraveling, and speculators that had held onto hope for higher prices are jumping ship.

OPEC is probably already questioning not only whether the production cut would help clear the global gut, but also whether the efforts to cap the cartel’s output should be intensified, with deeper cuts extended by the end of the year.

“The discussion will now center around whether or not Saudi Arabia is willing to give back market share to U.S. producers ... or are they ready for yet another round of the market share war,” Dominick Chirichella, senior partner at the Energy Management Institute in New York, told Reuters on Thursday.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • Kr55 on March 09 2017 said:
    Don't forget the speculators that are rushing in. Shorts smell blood. Working hard to break 200 day MA around $48.65
  • Scott Leach on March 09 2017 said:
    No sympathy for the losers on the longs.....what, you didn't see this coming?

    OPEC bullish jawboning was just that. The evidence has been suggesting all along that the cuts were not enough and the supply was still out pacing the demand. I am really skeptical of future demand forecast as well. I think IEA and OPEC have been blowing the numbers up to raise the price.

    OPEC should have left it alone and gone with the free market to begin with.....for all the long losers out there, SUCKS TO BE YOU!
  • keith on March 11 2017 said:
    Wti will be $70 by year end just as I predicted!!

    Opec will Intensify the Cuts again. For all those shorts Out there DO NOT FIGHT THE TREND!!!!!
  • wakeup keith on March 12 2017 said:
    Wake up keith...by yrs end the Russians will have already destroyed Americas east coast... and Gold will be the popular currency...real gold that you hold in your hand...not paper gold...sukkas...the price of oil will be $35 a barrel that about a third of a gram of gold by then
  • tony romeo on March 14 2017 said:
    whats the feeling as to the price hike in weak D2 market

Leave a comment




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