• 4 minutes What If Canada Had Wind and Not Oilsands?
  • 8 minutes EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 17 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 33 mins Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 10 mins U.S. Withdraws From U.N. Human Rights Council
  • 10 hours Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 mins Could oil demand collapse rapidly? Yup, sure could.
  • 9 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 2 hours Saudi Arabia turns to solar
  • 5 hours "The Gasoline Car Is a Car With a Future"
  • 4 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 3 hours What If Canada Had Wind and Not Oilsands?
  • 14 hours North Korea, China Discuss 'True Peace', Denuclearization
  • 14 hours WE Solutions plans to print cars
  • 4 hours Gazprom Exports to EU Hit Record
  • 6 hours EVs Could Help Coal Demand
  • 19 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 1 day Oil prices going down
  • 1 day Russia, Saudi Push For Big Hike In Oil Output Despite Iran Opposition
Alt Text

Was This Just A Temporary Pullback In Oil?

Technical analysis shows that despite…

Alt Text

Iran: Oil Prices Could Jump To $140 On U.S. Sanctions

Iran’s OPEC governor Hossein Kazempour…

Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Trending Discussions

The Blood Letting Has Only Just Begun

One steady reader of mine has questioned my recent analysis: While being positive on oil up until the break below $82, I’ve now become one of the most negative in the space as oil nears $60. He wondered aloud to me whether I’ve lost perspective. But have I? Hardly.

One of the incredible attributes of this oil market is its ability to breed selling as it goes lower, precisely because it puts more and more of US and Canadian production at risk. How much at risk? Most of my pessimism on oil as it nears $60 a barrel is contained in the answer to that question and what I see as a major smoke job that’s being done by many of the smaller and mid-cap oil companies and the analysts that follow them. I say “There Will Be Blood” – and their distress is not being correctly measured yet.

Let’s take two interesting updates this week – Conoco Phillips (COP) updated with a capital expenditure slashing for 2015 of almost 40%, yet they are claiming that their production will increase by 7% next year. Oasis Petroleum (OAS), with production far more reliant on short-term capex than Conoco similarly updated by cutting their spending budget in half, yet still claiming to increase production by 10%.

Who’s zooming who? Production increases with cratered budgets? These claims and others inside the distressed oil sector just don’t jibe – capex and production growth is only one of them. You can see the self-deception…

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