• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 2 hours U.S. Shale Oil Debt: Deep the Denial
  • 4 hours Satellite Moons to Replace Streetlamps?!
  • 2 days EU to Splash Billions on Battery Factories
  • 20 hours The Dirt on Clean Electric Cars
  • 3 days US top CEO's are spending their own money on the midterm elections
  • 7 hours Why I Think Natural Gas is the Logical Future of Energy
  • 17 hours Owning stocks long-term low risk?
  • 3 hours Can “Renewables” Dent the World’s need for Electricity?
  • 2 days The Balkans Are Coming Apart at the Seams Again
  • 2 days 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 3 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day The end of "King Coal" in the Wales
  • 6 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
Alt Text

Oil Experts Divided As Iran Sanctions Loom

The world’s top oil trading…

Alt Text

Oil Prices Subdued, But For How Long?

Oil prices may have closed…

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

Strong Oil Demand Growth Supports Oil At $70

oil tanker

Although oil prices were down early on Tuesday, with Brent just below the $70 threshold, robust global oil demand growth and continued OPEC-Russia production cuts are currently supporting the price of oil hovering at the $70 mark and overriding concerns that U.S. shale will grow even more than predicted.

At 12:12pm. EST on Tuesday, WTI Crude was down 0.87 percent at $63.74, and Brent Crude down 1.61 percent at $69.13.

Oil prices this month have not been so high in three years.

At the end of 2017 and early 2018, the sentiment turned decisively bullish, amid geopolitical concerns—mostly from the Middle East, signs of a tighter oil market, and healthy global economic growth that boosts oil demand growth.

“This rally has been driven first by robust fundamentals, with strong demand growth and high OPEC compliance accelerating,” Goldman Sachs said in a note on Tuesday, as carried by Reuters.

“We see increasing upside risks to our $62 per barrel Brent and $57.5 per barrel WTI forecast for the coming months,” Goldman said.

“The market is hitting technical resistance. We need to see a confirmation of a true break past $70 a barrel,” Olivier Jakob at consultancy Petromatrix told Reuters. Related: Romania Poised To Ramp Up Gas Output

So far this year, the oil market has looked more to the bullish factors and ignored the largest bearish one—the rise in U.S. oil production. American production growth has stalled in recent days because of the very cold weather, according to analysts. EIA weekly data shows production was 9.492 million bpd in the week to January 5, down from 9.782 million bpd the previous week.

Hedge funds have also been very bullish lately and have taken a record net long position in the main crude oil and fuels futures and options contracts in the week to January 9. Although this has left the market too stretched and exposed to risk of a correction, it looks like not many money managers are currently willing to bet against an oil price increase just yet, Reuters market analyst John Kemp says.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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