Holy cow it is cheap – Brent crude Dec 2021 is dirt cheap in real Euro terms
Looking at Brent crude in euro terms captures both crude oil bakcwardation, euro inflation and dollar weakening. Looking only in dollar terms then you loose …
Tagg: bjarne schieldrop
Successful production cuts but exit is not so easy
Brent crude oil is trading up 0.2% this morning to $71.5/bl supported by Kuwait’s statement that OPEC will discuss extending production cuts to 2019 at its …
Oil hurt by trade war concerns but fundamentals are bullish
Oil demand growth is super strong, inventories are declining, oil production in Venezuela is collapsing, renewed disturbances in Libya, OPEC+ is all in on …
A two currency oil market
China today launched its long awaited yuan denominated oil contract at the International Energy Exchange (INE) in Shanghai. Seven crude streams from UAE, …
More downside to come – 2018 buying opportunity sailing up
It is very clear that Brent crude oil has followed the general risk-on/risk-off movements in global equities so far this year. The catalyst and the real mover …
US crude production to average 10.8 to 10.9 m bl/d in 2018
The US EIA yesterday released its monthly drilling productivity report as well as its DUC report (showing the number of drilled and completed wells). The …
Pain trade, weak forward USD and inflation makes forward oil prices are a real bargain
The sell-off in global equity markets accelerated yesterday dragging both front end and longer dated crude oil contracts lower. Since one week ago the front …
Overdue correction on the back of equity sell-off and rising US crude production and rig count rise
Oil prices experienced a long overdue price correction last week as Brent crude fell back 2.8% to $68.58/bl along with a broad based sell-off in equities. …
Oil and Dollar – A self-reinforcing feedback loop
There is an intimate relationship between the oil price and the USD. Looking back at the crude oil price and the USD Index since 2013 they are mirror images of …
Market does not care about US shale, but it should. It is now growing as it did in 2014
Yesterday’s US EIA Drilling Productivity Report (DPR) showed that US crude oil production is now growing at a marginal rate of 1.3 mb/d/yr and as strongly as …