Oil Potential Wild Card
A wild card could come from the oil patch after reports that Kuwait’s Oil Minister has requested both Libya (one million b/d) and Nigeria (500,000 b/d), are going to be asked to lower production. For the latter, it comes as production is at its highest level in four years. I was surprised to see West Texas Intermediate (WTI) not hold above $45.00 last week on those massive drawdown numbers, but a sharp increase in rigs derailed its momentum.
I’m not concerned with natural gas rigs, but seven more oil rigs put the count to 763 from 351 a year earlier. This time, it wasn’t Permian Basin driving oil rigs higher; in fact, the hottest crude patch in the country has been flat for five weeks. Still, there is a delicate balance between allowing prices to edge higher and taking advantage of OPEC’s waning influence.
If crude begins to rally in the second half of the year, it’s going to help the Dow move to a significant leg higher.
Add a Comment!
Products & Services |
In The Media |
About Us |
All Rights Reserved.