• 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 13 minutes Could Venezuela become a net oil importer?
  • 18 minutes Oil prices going Up? NO!
  • 2 hours The Tony Seba report
  • 4 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 1 hour Could Venezuela become a net oil importer?
  • 2 hours Harley-Davidson "Made in EU"
  • 4 hours Erdogan After Erdogan: New Presidential Mandate After Yesterday's Elections
  • 53 mins Time Of Recession - China and Europe Are Warning That A Trade War Could Trigger A Global Recession
  • 7 hours LNG Shortage on the Way
  • 3 hours The U.S. Will Soon Give North Korea a Timeline of 'Specific Asks
  • 13 hours Kenya Eyes 200+ Oil Wells
  • 13 hours Are Electric Vehicles Really Better For The Environment?
  • 5 hours Sell out now or hold on?
  • 13 hours OPEC soap opera daily update
  • 22 hours Saudi Arabia turns to solar
  • 17 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 5 hours No LNG Pipelines? Let the Trucks Roll In
  • 1 hour Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
Alt Text

Goldman: Expect Another Bull Run In Oil

While oil prices are tumbling,…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

Why Oil Prices Are On A Crash Course This Fall

Offshore Guyana

Refining maintenance season is a few weeks away, a period of time that could be hugely negative for oil prices.

Already the oil markets are dealing with record levels of oil and petroleum products sitting in storage, but a refining lull would put a major dent in oil demand. While the maintenance season is temporary, it could keep oil prices low for the next several months.

Between the months of July and October, purchases of crude oil from the refining industry in the U.S. has declined by roughly 1.2 million barrels per day over the past five years. "People are looking ahead to the fall and are worried," Michael Lynch, president of Strategic Energy & Economic Research, told Bloomberg in an interview. "There’s more and more talk of prices going south of $40 and as a result people are going short."

Gasoline inventories remain at extraordinary high levels, only down slightly from record highs. Several weeks of increases in the level of gasoline sitting in storage has weighed on the markets. Worse, the high inventories come at a time when oil traders expected them to fall because of summer driving season. Unfortunately for oil bulls, they have not.

Crude oil inventories have declined for about ten consecutive weeks, but still are extremely high. And the drawdowns could come to an end, or at least narrow, if refiners cut back on purchases during maintenance season. Related: Is This A Game Changer For The US Oil Industry?

That is all bearish news for oil prices in the near-term, and the markets are starting to take notice. Hedge funds and money managers have cut their bets on rising oil prices and increased their short bets. Net-long positions are at their lowest level since March.

Piling on to negative news is the steady rise in the rig count. Baker Hughes reported yet another uptick in the rig count last week, increasing the likelihood that the oil and gas industry adds new sources of production, which could halt more than year-long contraction in supply.

WTI and Brent fell by more than 2 percent during midday trading on July 25, both dipping below $45 per barrel.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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