Momma, put those drills in the ground, and unleash the U.S. energy producer--assuming they have the stomach to do it! The UPI and Dan Graeber reported that, “U.S. presidential remarks about Alaska and senate measures on offshore drilling may point to an executive action on oil and gas, authorities on the matter said. "We're going to take care of Alaska too," President Donald Trump told Sen. Lisa Murkowski, R-Alaska, during remarks on the signing of an executive order on national lands. "Don't “worry about it."
The biggest, best, massive tax cut plan in all human history was not enough to shake the petroleum sector out of its bearish slumber. The petroleum sector has been dripping down slowly like a good old fashion water torture as the market is fixated on short-term supplies and not our future. While the market continues to believe that shale oil is going to plug the gap in the global oil market, it will at some point find out that shale oil is a band-aid on what is becoming a gaping wound.
Crude oil prices are dead with Rig-or Mortis, or the adding of oil rigs weigh on market sentiment. Shale producers are expected to continue leverage up to the hilt with some producing the type of oil that no one really wants with hope that prices do not crash and drive them into bankruptcy. The confidence of the shale producers comes from OPEC which is astounding the world by adhering to production cuts.
Global equity markets rallied on Monday to lift a gauge of world stock indexes to a fresh peak, while the euro briefly jumped to a five-month peak against the U.S. dollar as the first round of an election in France went to the market's preferred contender.
Oil prices recovered some lost ground on Monday after big losses last week, driven by expectations that OPEC will extend output cuts till the end of 2017, although a rise in U.S. drilling capped gains.
Crude oil prices are creeping back as global markets breathe a sigh of relief in the aftermath of the French elections. Crude oil sold off hard on geo-political risk and the perception that U.S. oil production is going to offset OPEC production cuts even if it's not true. Of course, the market believes it, at least right now, because if you say something long and hard enough, even if it is not true, the market will react.