The Covid-19 pandemic has set in motion the most significant drop in global energy investment in history, with spending expected to plunge in every significant sector this year
The crude oil market is having its best month percentage wise in history as we start to unlock the global economy.
The tendency of the oil market to correct and top often happens ahead of holiday weekends. Still, this market deserves to correct.
What happened to the WTI futures contract’s June swoon? After oil prices crashed on the May contract expiration, the clearing firms and exchanges were all ready for a repeat subzero performance.
The EIA has confirmed that the Covid-19 drop in demand forced what now is the most significant shale production setback ever. Production in the 7 most active shale basins will fall to 7.822 million BPD.
Pent up demand, stimulus and a historic production cutback is unleashing economic optimism. Oil prices are soaring as there are more signs that demand is rising more quickly than many had anticipated.
Crude oil prices are on the rise as cities start to reopen, and gas stations are getting full of drivers that need to fill their tanks, in some cases for the first time in over a month.
While Federal Reserve Chairman Jerome Powell broke markets yesterday warning about the possibility of a prolonged recession, the oil numbers are telling a different story.
Oil producers are finding a way to store some oil and prices are still trying to comeback despite uncertainty about how quickly the U.S. can open up the economy.
Oil is back in rebound mode as the market is getting assurances that massive production cuts are coming. Saudi Arabia led the way with a promise to over comply with 1.0 million BPD production cuts.