Kuwait

Are Oil Prices To Blame For The Venezuelan Crisis? (Spoiler Alert: Of Course Not!)

Venezuela is undergoing the typical collapse of a country that has been subject to years of all kinds of political interventions. The fall in oil prices is the external shock that brings to light the embarrassing result of years of price controls, currency controls, nationalizations, uncontrolled monetary creation, and economic dirigisme.

WTI/RBOB Jump On Largest Crude Draw In 2017 Offset By Major Product Build, Rising Production

WTI/RBOB prices were at the lows of the day after last night's huge surprise inventory data from API, but kneejerked higher after DOE reported a surprisingly large crude draw (the biggest since Dec 2016. However, it's clear that refineries are on fire as gasoline and distillates inventories surged by the most in at least 3 months. US crude production rose once again to its highest since August 2015.

Europe And S&P Futures Higher, Dollar Drops As OPEC Talks Oil Up

European stocks rose amid earnings beats, offsetting weakness in the energy sector and easing investor concerns ahead of the weekend’s French election. Asian shares and U.S. futures also rise. The dollar weakens against the euro and most crosses, while crude oil rebounds following renewed OPEC chatter of a production cut, this time with Saudi Arabia seemingly onboard.

Oil Slides After Saudis Unexpectedly Cast Doubt On Production Cut Extension

One week after "unnamed sources" reported that Saudi Arabia had backed the proposed 6 month extension to oil production cuts, this morning oil is lower after the world's biggest oil producer appeared to backtrack on its trial balloon from last week, when Saudi Arabia’s energy minister said it is "too early" to decide whether OPEC will extend its crude-production-cutting agreement for the rest of the year.

Is America's Alliance with Turkey Doomed?

The historic breakdown in Anglo-Ottoman relations is a useful model for evaluating today’s troubled alliance between the United States and Turkey...

Saudi Arabia Vs. Russia: The Next Oil Price War

International oil markets could be heading towards a new war, as leading OPEC and non-OPEC producers are vying for increased stakes.  Until 2015, Russian oil supplies had been dominating European markets, as most OPEC producers had no interest in European demand. Due to new players entering Asian markets, and the lower demand in the U.S., the Oil Kingdom is now looking for a confrontation.

Rig Count Continues To Threaten Oil Price Recovery, Saudis Cut Prices To Asia (Again)

For the 11th week in a row, the number of US oil rigs rose (up 10 to 662 - the highest since September 2015). And worse still, there are thousands of drilled shale wells are sitting idle, unfracked and uncompleted. That supply sitting on the sidelines will put downward pressure on any new oil price rally... which may explain why the Saudis have just cut prices to Asia once again.

RBC: Two Things Are Behind Today's Rally

"With the ‘hawkish Fed/dovish ECB’ scenario, the USD is experiencing ‘signs of life.’  In turn, this could in fact reinvigorate ‘US domestic reflation’ trades which had been on life-support or unwound outright over the prior weeks / months."

Goldman Warns OPEC Production Cut Extension Will Backfire, Result In Lower Prices

"Oil prices above $60/bbl would prove self defeating in our view given the flattening of the oil cost curve and the unprecedented velocity of the shale supply response." A decision to extend cuts, "would only exacerbate the backwardation that we project... and created downside risk to our 2018 $58/bbl forecast."