Here is this morning’s oil price chart from barchart.com:
Christopher Alessi, Wall Street Journal, explains why prices continue to move lowere, here…
”The current price fall is greatly aided by the general fall in global equities due to persistent concerns about economic growth, including the U.S.-China trade dispute,” which has led to “fears of downward revisions in global oil demand growth,” according to Tamas Varga, analyst at brokerage PVM Oil Associates Ltd.”
And, this:
”In its drilling productivity report Monday, the U.S. Energy Information Administration estimated that U.S. shale oil production would rise from December by 134,000 barrels a day to reach 8.17 million barrels a day in January.”
“OPEC and its partners agreed at the start of December to begin curbing crude output by 1.2 million barrels a day, starting in January. The deal, announced Dec. 7, had initially bolstered crude prices but failed to ignite a sustained rally amid skepticism by investors that the cut would be enough to rebalance an increasingly oversupplied oil market.”
In our December podcast, which you can find posted on our blog, Andy Lebow suggested that cuts agreed to in the recent OPEC meeting would eventually support the market… However, he did allow for near term weakness as the current stock levels weighed on the market…
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