While the Energy Information Admintation reports another drop in crude stocks, doubts about a OPEC/non-OPEC accord was met with skepticism. Traders assumed this would be the end of the OPEC/non-OPEC deal; but not so fast.
Crude oil prices are looking for direction after Iraq said it should be exempt from oil production cuts. Iraqi oil minister Jabar Ali al-Luaibi said Iraq should be exempt from any production cut because of the wars it has fought since the 1980s has not allowed them to achieve their oil production destiny.
The price of crude oil has been caught in one of its most volatile couple of weeks in months after Oragnization of the Petroleum Exporting Countries (OPEC) and rival Russia hinted they may discuss a possible output freeze, as demand slows and a global surplus becomes more entrenched.
Crude oil prices settled down more than 1% today, snapping two consecutive days of gains, on renewed concerns about an oil glut, a stronger dollar and expectations that Nigerian rebels will stop hampering that country's crude output.
Reverberations from the oil price crash continue as more bankruptcies and increased geo-political tensions are causing a seismic shift in the long term outlook for energy production. With mounting pressure on oil-producing countries leading to civil unrest and more bankruptcies of highly leveraged oil companies, the bottom of the commodity cycle is well underway. The dominoes are falling and prices are rising.
As crude oil prices hit another 7-month high on renewed concerns about risks to global supply, the question becomes whether shale oil producers can come to the rescue. Around the globe we are seeing the loss of millions of barrels of global production offline causing many to worry about the sustainability of production in a time when global demand is rising. Canada, Nigeria, Venezuela and other producing regions have reduced oil production by an estimated 3.8 million barrels a day. Can the shale patch ramp up and save the day?
War is over if you want it. Crude oil prices closed above the 200-day moving average for the first time in 2 years on reports that Saudi Arabia and Russia had agreed to freeze production with or without Iran.