Brent crude prices, the benchmark for half the world’s oil, will weaken for a second year in 2014 as U.S. output expands and threats to Middle East and North African supply ease, the most-accurate forecasters said.
Even with OPEC forecast to keep its output quota unchanged at a meeting this week, falling oil demand and prospects for increased supply from some member states mean the group’s leader, Saudi Arabia, will have to cut production anyway.
Since breaking the $100 level in mid-October, WTI crude oil futures have been in a clear downtrend as prices continue to fall through key support levels. Here's an options strategy to take advantage of that with a great risk vs. reward ration.
China's imports have surged in recent years from OPEC nations such as Saudi Arabia, Iraq and the United Arab Emirates, according to Chinese customs data. The U.S. is still No. 1 in crude imports from the entire world.
The government shuts down and the outlook for energy just got a little murky. While transportation is not directly impacted by the government shutdown, a prolonged stalemate could slow the economy and U.S. oil demand.
The writing is on the wall. In the United States coal is on its way out and natural gas is on the way in. While the market only saw a slight pop on yesterday's big announcements on coal and natural gas, it signals the beginning of a new era.