Crude oil prices continue to rise as the market prepares for another drop in the U.S. rig count and floods in the Gulf of Mexico could slow U.S. oil imports. This comes as Exxon Mobil and Chevron report earnings and no doubt more capital spending cuts in a historic retrenchment in the oil complex.
Oil futures slid after setting a 2016 high on Thursday as traders locked in profits, though analysts said supply disruptions, strong investor appetite and a weakening dollar could push prices higher soon.
Crude oil prices surged again as U.S. oil production fell for the seventh week in a row and global central bankers seem a little more upbeat. With the Federal Reserve changing the wording and removing “risks" from their statement and Japan’s central bank holding fire, the demand expectations have changed dramatically from just a few months ago when many thought that global oil demand would grind to a halt.
Crude oil prices rose on Tuesday, boosted by expectations that demand could grow quickly enough to match supply this year, although concern over a potential battle for market share between Saudi Arabia and Iran limited gains. Front-month Brent crude futures were up by 74 cents at $45.22 a barrel by 1340 GMT (8:40 a.m. ET). U.S. crude futures rose 76 cents to $43.40 a barrel.
Crude oil prices are trying to stabilize as traders and oil companies try to predict when oil production will find equilibrium with demand. There is a wide degree of different thinking on this topic, but I predict it will happen much sooner than people think. We’re faced with massive cap x cuts and plunging rig counts, as well as the inability to get capital to fund oil projects.
Even as the international sanctions placed on Iran come to an end, the country’s oil industry faces a serious challenge from within. Internal conflict within the Iranian government threatens the future of Iran’s oil industry and could significantly hinder Iran’s economic growth in the process. This can be traced to the legacy of the 1979 Revolution, 1951 oil crisis and even to the discovery of oil in the Middle East.
Spring is busting out all over, and so is gasoline demand. Low gas prices are causing a buying frenzy at the pump as gasoline demand in the month of March hit an all-time record high. According to the American Petroleum Institute (API) the lowest average price for regular unleaded gasoline in 12 years has Americans guzzling gas like never before.