Crude Oil Crushed

WTI Crude oil prices topped $93.50/barrel on Monday and now trading at $86.21/barrel at writing. Why the significant drop? Let’s look at the fundamentals and the technical for an explanation. From the fundamental perspective, China re-affirmed its stance this week on its zero-COVID policy strategy that when a few cases are confirmed, a lockdown of […]

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OPEC+ Production Cuts Rallies Market

OPEC+ alliance announced a production cut of 2 million barrels per day on Wednesday, October 5, which is shy of the 1 million barrel per day cut the market expected. As a result, oil prices have rallied substantially over the past week. This supply cut has intensified tensions between Saudi Arabia and the U.S. Administration […]

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Extreme Energy Volatility is Back

Over the past week, WTI crude oil has traded in a range of $11/barrel, Heating Oil $0.59/gallon, and European natural gas €118/MWh. This is extreme energy volatility, even from what we’ve seen earlier this year, as traders begin to position themselves ahead of the OPEC+ decision, the perceived weakness in Chinese oil demand, and less […]

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New # 1: World’s Most Valuable Company

Last week, Saudi Aramco surpassed Apple as the world’s most valuable company in the world.  Aramco’s market valuation was just under $2.43 trillion when they surpassed Apple, which dropped 5% during trading last week and now has an evaluation of $2.37 trillion. Apple topped Aramco for title of world’s most valuable publicly traded company in […]

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World Oil Watch 2022

There is an endless supply of breaking news events that are impacting the oil market daily. China, India, OPEC, inflation, South America, and of course, the Russia/Ukraine war are all big item headlines that have gotten us to a market where both WTI and Brent have climbed above $114/BBL. Let’s explore some of these headlines […]

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$100 Per Barrel?

The latest data from the Energy Information Administration (EIA) from January 14th showed a small crude inventory build of 500,000 barrels.  This has been coupled with a large increase of gasoline which added 5.9 million barrels.  Even with this inventory build, United States commercial petroleum stocks have declined most of the past eighteen months.  The […]

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