The Brent-WTI spread continued to widen due in part to the growing U.S. oil glut but also because of an increase in the geo-political risk trade. Iran dashed hopes that there might actually be progress with the Iranian nuclear soap opera.
While the weather in China is very cold, it appears their economy is starting to get red hot. China’s export growth exploded, rising 14% in the month of December. Because of that petroleum demand, expectations are rising.
U.S. oil output is poised to surpass Saudi Arabia’s in the next decade, making the world’s biggest fuel consumer almost self-reliant and putting it on track to become a net exporter, the International Energy Agency said.
While the oil market is falling on fears of slowing growth and the possibility of going over the fiscal cliff in a barrel, long term the outlook for the US energy Industry is looking better all the time.