The Federal Reserve takes out its reference to "stabilizing oil prices" and the Saudi's are dropping hints of an oil production cut. This comes as U.S. oil production sputters and inventories falls. We may have just hit a bottom as crude oil companies quickly react and probably overreact regarding July's oil price crash.
We’re just past the halfway mark of the week and the year. Many will argue that the $50 per barrel level is the halfway point between the range that WTI belongs ($45 - $55). We’re at the halfway point for the hedges that most oil producers had on for 2015.
After what Israel calls a historic mistake the Iran nuclear deal really could open up a new front in the OPEC production war. We know that OPEC's main reason for flooding the market was to try to defend market share from the upstart U.S. shale producer. But the potential return of Iranian oil may actually turn OPEC's production war away from the United States and focus on Iran.
A Greek deal and a possible Iran deal is giving crude oil mixed signals. On one hand, it seems that a deal in Greece will allow the market to focus on the more positive data that has been coming out of the Eurozone.
Crude prices slid after a Greek deal hope rally, only to be slowed by a report by the IEA. The report warned that demand for oil will slow in 2016, and Greece, China and the potential return of Iranian oil is not going to improve that outlook.