Technical & Fundamental Oil Reports Specialists

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Greeks rebel and QE takes a back seat

Published Monday, February 2nd, 2015

Oil prices made an encouraging rebound on Friday with Brent gaining $3.86 bbl (52.99) and WTI $3.71(48.24). The best fundamental explanation that can be found is that the US drilling rig count fell by 94, the biggest weekly decline since 1987. The rig report generated buying late in the day which triggered stops. Heat closed +9.61 cts/gal and RBOB +8.75 cts/gal.

Other oil news was rather bearish with Ali al-Naimi confirmed as Saudi oil minister by King Salman and the latest monthly OPEC production survey from Reuters showing a 130,000 bpd increase in January to 30.37 mbpd. In another Reuters poll, this time of economists and analysts, the forecast for the average price of Brent in 2015 was cut by $15.70 bbl to $58.30 bbl. The Omani oil minister has been complaining about OPEC oil policy and it looks as though, basis settlement prices on the DME which Oman uses as a peg, the country’s OSP for March deliveries will fall by over $14 bbl.

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Posted by David Hufton