Market Insights

December 29, 2015 • Posted in Market Insights

Week of December 28, 2015

  • On December 18 the US Congress voted to lift a ban on exports of US crude oil originally enacted during the 1970’s oil shortage.
  • The news that US oil could now be freely sold on the global market led to reduction of the previous discount for WTI vs. Brent crude.
  • Brent crude fell to a six-year low in post-Christmas trading as Iran announced plans to cut prices and boost production. Iran controls the 4th largest reserves of oil in the world.
  • Iran exported 2.5m bbl/day before the US imposed sanctions at the end of 2011.
  • Sanctions will be lifted early in 2016 and Iran needs oil revenue to rejuvenate its economy.
  • Natural gas prices remain weak at around $1.90 per MMBtu NYMEX as mild weather in the US has led to relatively weak seasonal demand for gas.

 

WTI Crude Oil & Brent Crude Oil 12282015

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