Oil slips… Reuters – Commodity Research Group

April 7, 2016 by Jim Colburn Leave a Comment

Good commentary in a short piece from Reuters: http://mobile.reuters.com/article/GCA-Commodities/idUSKCN0X4029?il=0

“Oil exports from Iraq’s southern ports have risen to an average of 3.494 million barrels per day (bpd) in April, an official from the state-run South Oil Company said on Thursday. This was above the 3.286 million bpd average for March.”

“We are in the aftermath of yesterday’s (EIA) data, but if you zoom out there’s still oversupply and record inventories,” said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam.”

“As a result of this, and also production data from the United States, Goldman said it was “somewhere between in line and modestly bearish for prices … (and that) $35 per barrel WTI is not too high and not too low but just right.””

We won’t hold Goldman to a $35 straddle sale but, FYI, May $35 straddles settled at 327, June at 571…

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

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