I have not been watching over the holidays, but it would seem West Texas Intermediate is at almost $50. Hell at that price we might actually start making money again!
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Oil prices rise as $ drops , pay attention the more the US Govt devalues the $ more price of oil goes up, jeez you didn't know this!!!
Oil prices rose reacting to SA, don’t expect prices to rise any higher. Demand still flat. Nothing in the fundamentals suggesting any return to high prices. SA will slow production now in return for right to increase production once COVID wanes later in the year. Russia could still flood the market at any point. Hunker down this year.
There was a very good article by PK Verlanger regarding independent oil producers hedging. Basically they will hedge all their 2021 production at $50 and ride out next year. So Saudi just shot themselves in the foot big time. Expect US shale to step in and fill their 1 MMBBLD gap easily with prices to go back down. Now the real question is did Saudi and/or Russia also hedge?
“OPEC is about to open the valves”... wrong. SA saves the day again... big pull back for a least 2 months. Let’s hope it stabilizes by summer ... I will do my part as I really need a long post pandemic road trip!
I agree, the rise has been pretty amazing. Let's hope it continues and we see $100/bbl by summer!
@2sch, We’re all happy to know you’re NOT a Certified Financial Advisor.
Hard to believe but oil prices have risen by nearly $90/bbl just since April 20th. More than $10/month average rise. That is one heck of a strong market, I would say.
Oil price is a tenuous indicator of ability to make money. It doesn't matter if the index price of WTI is $5,000/bbl IF NOBODY IS BUYING IT. Consumption is flat, OPEC is about to open the valves. We are no where near out of the woods, especially with Aviator wearing Mr. Lockdown possibly taking the reigns of this country.
We are still looking at another 10%.