Crude

US Shale Production To Soar By 3.5 Million Barrels/Day Over Next Five Years: BofA Explains Why

Shale oil output in the US may grow significantly over the next five years due to increased activity in oil rigs and fast productivity gains, Bank of America predicts. The key reason: breakeven costs for key major US plays now stand around the $55/bbl mark. Assuming a gradual recovery in oil prices, annual US shale oil growth is expected to rise by 700 thousand b/d annually by 2022: a total increase of 3.5mmbpd.

Hedge Funds Have Never Been This Long Crude Oil

Despite record gluts in crude and gasoline amid resurgent US crude production, hedge funds boosted their net long position in WTI last week to a new record high.  For the first time ever, hedge funds hold more than a billion barrels of bets that crude oil prices will rally.

The Four Key Themes From Q4 Conference Calls

Since President Trump’s surprise victory over Hillary Clinton in November, investors and management teams have been acutely focused on the new administration’s policy proposals. As expected, all 4 key themes discussed on Q4 conference calls are closely linked to Trump's policies and include tax reform, regulation, fiscal spending and trade policy.

The Gaslighting Of The American Public Continues...

"...but then even if Trump is crazy and incompetent, what’s so great about a Deep State security matrix that refuses to be subordinate to anybody, that can do whatever it wants to whomever it wants?"

Why Sub $50 Oil Is More Likely Than $70 Oil

Comparative inventory analysis suggests that the current ~$53 per barrel WTI oil price is at least $6 per barrel too high. Don’t hold your breath for $70 oil prices.