Goldman: The Oil Price Rally Isn’t Over Yet

Oil prices declined by more than 6 percent in the last few trading days, following reports that OPEC and Russia could boost production in the second half of 2018. However, the outlook is still bullish, at least according to Goldman Sachs.

As of now, it appears that Saudi Arabia and Russia are in discussions about how much oil to add back onto the market, with the upper bound rumored to be between 800,000 bpd and 1 million barrels per day (mb/d), or a more modest 300,000 bpd at the lower end. Late last week, WTI and Brent plunged on the news that the group could alter production levels in a few weeks.

Click here to read the original article: https://oilprice.com/Energy/Energy-General/Goldman-The-Oil-Price-Rally-Isnt-Over-Yet.html

The Most Underappreciated Story In The Oil Market

The world is currently watching the growing tensions in the Middle East, and oil market analysts are guesstimating just how much Iranian oil supply the renewed U.S. sanctions could stifle.

Yet, the biggest story in oil markets this year may well take place far from the much-publicized tensions in the Middle East – namely China’s ever-growing oil demand.

Click here to read the original article: https://oilprice.com/Energy/Energy-General/The-Most-Underappreciated-Story-In-The-Oil-Market.html

Why Oil Prices Are Likely To Go Higher

WTI just hit $70 per barrel for the first time since late 2014. Prices continue to edge higher, pushed along by strong demand and falling inventories. But it is the geopolitical narrative that has really taken hold as of late, with the danger of supply outages looming in the next few weeks.

This is the fateful week in which the Trump administration has to decide on what to do with the Iran nuclear deal. All signs point to him attempting to terminate the agreement. The return of sanctions could knock off as much as 400,000 to 500,000 bpd from Iranian supply, a huge volume that would put the oil market in danger of a shortage.

 

Click here to read the original article: https://oilprice.com/Energy/Energy-General/Why-Oil-Prices-Are-Likely-To-Go-Higher.html

Eight Geopolitical Risks That Could Send Oil Prices Surging

The geopolitical risk premium has taken center stage as one of the key drivers of oil prices in recent months, often trumping fundamentals to send prices soaring on concerns about where the next sudden oil supply disruption would come from.

In recent weeks, a perfect storm of nearly erased global oil glut and simmering—and at times flaring—tensions in the Middle East and the worst production loss without an armed conflict (Venezuela) have supported oil prices and boosted them to levels last seen in November 2014.

 

Click here to read the original article: https://oilprice.com/Geopolitics/International/Eight-Geopolitical-Risks-That-Could-Send-Oil-Prices-Surging.html

Citi: U.S. To Become World’s Top Oil Exporter

As global oil markets shift their attention from U.S. shale oil production back to a resurgent Saudi Arabia and Russia and geopolitical concerns bearing down on oil prices, Citigroup said last Wednesday that the U.S. is poised to surpass Saudi Arabia next year as the world’s largest exporter of crude and oil products.

The U.S. exported a record 8.3 million barrels per day (bpd) last week of crude oil and petroleum products, the government also said Wednesday. Top crude oil exporter Saudi Arabia’s, for its part, exported 9.3 million bpd in January, while Russia exported 7.4 million bpd, the bank added.

Click here to read the original article: https://oilprice.com/Energy/Energy-General/Citi-US-To-Become-Worlds-Top-Oil-Exporter.html