The promise of steady returns with low operating costs are leading companies and individuals to purchase mineral rights and take advantage of monthly royalty checks. (Bloomberg.com)
Saudi Energy Minister Khalid al-Falih said he favored extending the current oil production cuts by nine months until the end of 2018 and said it was premature to talk about exiting the cuts. He added that OPEC would examine progress at its next meeting in June. WTI Crude is UP at $57.85; Brent is UP at $64.07 (via Reuters).
Russia needs lower oil prices than Saudi Arabia to balance its budget. The Saudis are preparing a stock market listing for national energy company Aramco next year and would benefit from pricier crude. The API reported late Tuesday that U.S. crude supplies climbed by 1.8 million barrels for the week ending November 24. New supply numbers published today. WTI Crude is $57.85; Brent s $63.52 (via Reuters).
Risk to oil prices is skewed to the downside this week even while positioning already reflects a high probability of the nine-month oil production cut extension. Doubts have emerged over whether Russia will agree to join OPEC in an extension beyond March, says Goldman Sachs. WTI Crude is $57.63; Brent Crude is $63.22 (via Reuters).
Expect volatile prices in anticipation of OPEC’s meeting. Prices might fall in the immediate aftermath of the deal as speculative length "sells the news". Fundamentals should keep Brent at an average of $60 a barrel this quarter, says Barclays. WTI Crude is $58.28; Brent is $63.52 this morning (via Reuters).
Oil prices will remain range bound ahead of OPEC’s meeting next week. Cartel members and non-OPEC producers, including Russia, are expected to extend the agreement to reduce oil production, lowering excess global supplies. WTI Crude is up at $57.87, Brent is up to $63.25 (via MarketWatch).
OPEC producers will meet November 30 and are expected to extend current oil production cuts. Some investors are anxious over Russia’s commitment to the proposed agreement. WTI Crude is up at $56.51, and Brent is up at $62.33 this morning (via MarketWatch).
Short-selling is rearing its head in the oil market again. Traders are looking for heightened geopolitical risk and short-term supply imbalances to stimulate trade ranges, neglecting to recognize longer-term fundamentals in place. WTI Crude is down to $56.25, and Brent is down to $61.95 this morning (via Bloomberg Markets).
Saudi Arabia has signaled its willingness to agree to extend oil production cuts, but Russian backing now appears to be questionable and they may push their decision to the first quarter of 2018. WTI Crude is UP at $56.03 and Brent Crude is $62.12 (via Reuters).
Oil prices have risen steadily over the past few months as supply cuts have drained inventories, but prices slipped in recent days partly due to evidence that supply from the United States is rising too fast. WTI Crude is at $55.21 and Brent is at $61.54 this morning (via Reuters).