After falling for the past two days, the price of WTI crude oil has bounced back off its lows to trade flat to slightly firmer at the time of this writing on Thursday morning. However, WTI still remains in the red three and half days into the week. As a reminder, oil prices rallied last week and made back a significant chunk of their losses from the week before, but not enough to turn positive on the month. At $61.30 per barrel, WTI thus remains more than $5 or 8% below the high of $66.62 hit on Jan. 25.
Crude oil prices are getting rattled as the fear that rising interest rates will slow down surging U.S. and global demand. High-yielding auctions and Fed minutes, that stated the obvious, was enough to send stocks and oil and the 10-year Note on a wild ride. At first, the market took the Fed's promise of gradual rate increases as a positive but later deemed that the Fed was still hawkish. Yet, the real surprise is that the market is surprised that the Fed can read economic data.
Ten years ago, the market was fretting, everyone was worried about "peak oil,” and now the focus is on peak demand. Instead of the world on a collision course of fighting over the last drop of oil, now it seems that we have turned the world upside down and now we are seeing predictions that oil demand will peak. The latest peak demand forecast comes from BP, which is predicting that the demand for oil will peak before 2040.
WTI crude oil prices are gaining on Brent as strong U.S. demand and Canadian pipeline issues tighten U.S. oil supply even further. This comes as OPEC comments suggest that they are still fully committed to keeping production cuts in place until the end of 2018, along with their non-OPEC coconspirators and even suggesting that the deal could go on longer if need be.
Here we go loopty loo, here we go loopty li. Here we go loopty loo, all on a Saturday night. Crude oil prices are getting loopy as a historic turnaround for the major U.S. oil import terminal LOOP, otherwise known as the Louisiana Offshore Oil Port, is getting looped around for now exporting oil. This comes as oil prices looped back around as global oil demand numbers led by record oil imports in India and another reported drop in Cushing, Okla., supplies continue to support prices as global stock prices rebound
Despite the recent correction in crude oil, the Saudis say they are all in when it comes to cutting production. Despite the recent stock-market inspired shake out and the surge in shale oil output, the truth is that the global oil market is going through its most significant tightening cycle in during a decade. The Saudis are not going to let a little stock market correction and shale surge stop them from their goal of tightening the global oil market place.
Crude oil prices are soaring back after getting smashed on last week’s stock market correction. Of course, all the selling in stocks and oil are not about what is happening now but what may or may not happen in the future.
Many are saying that U.S. oil prices are falling due to the projections for rising U.S. production. Predictions by the IEA and the EIA about a surge in oil suggest that U.S. oil production, which supposedly stands above 10 million barrels a day, will soon exceed 11 million barrels a day. Yet, the truth is that if demand growth stays at the rate we are currently at, then we will need that additional oil to meet global demand. Still, worries about global growth in recent days surrounding the stock market correction are causing some to think an oil demand slowdown is in store.