Crude oil prices sold off ahead of expiration as traders had their eyes on the skies and not their trading screens. Oil was eclipsed on a day where stock market volumes dried up and it seemed that traders ran for cover ahead of expiration. OPEC punted at their technical meeting and put off a decision to extend until their November meeting.
In the battle between the bulls and the bears, the one trend that remains constant is the trend of falling U.S. crude oil supply. Once again, the crude oil supply drop far exceeded market expectations, and according to data from the American Petroleum Institute, it fell by 9.2 million barrels last week.
Crude oil prices turned lower as the long-time oil bull, formally known as the "oil god,” threw in the towel on his largest Astenbeck Capital Management LLC commodity fund. Not only did he close the fund, he shook his bullish followers with a blasphemous statement that oil may be stuck around $50 a barrel or lower, I guess, forever. Yet, is this former oil deity, who has been brought back down to mere mortal status, getting out when it is really time to get in?
Crude oil prices cap off their best monthly gain since April of 2016 as geopolitical risk is rising in Venezuela and a report from the Energy Information Administration(EIA) is saying that we are not producing as much oil as we thought we were.
Crude oil prices must find new balance as global oil stock piles are falling against surging global demand and an increasing amount of geopolitical risk. Russia and Venezuela are the hot issues, with Iran and North Korea lurking in the background.
Crude oil prices are on the rise as Saudi Arabia pledges to reduce oil exports and the fact that U.S. shale pains are becoming more obvious to the market. Halliburton is warning that the U.S. oil rig count is about to plateau or "peak shale,” which we predicted.
For oil and the markets, Russia is all the rage. There is the big OPEC/non-OPEC pow-wow in Russia and reports that Special Prosecutor Robert Mueller is opening an investigation into President Donald Trump's business transactions with Russia one day after the President said that that would be a red-line for him.