Market Insights

February 2, 2016 • Posted in Market Insights

Week of February 1, 2016

  • Crude prices rebounded last week based on comments made by the Russian energy minister that collaboration with Saudi Arabia on crude production cuts appeared possible
  • Many analysts consider this highly unlikely as both countries need cash and can’t afford to lose market share to other producers
  • A 4 mm bbl. drawdown in stocks of gasoline and other distillates in the US also helped boost prices, and oil traded just above $32/bbl over the weekend
  • An 8 mm bbl crude stock build last week will likely limit any further upward movement
  • Natural gas prices moved up to $2.22 per MMBtu NYMEX and lifted cracker feedstock prices accordingly as inventory draws exceeded expectations
  • Colder weather in the US is expected to boost demand in the short term.

 

WTI Crude Oil & Brent Crude Oil 02012016

Stay informed with industry trends and insights.

Stay informed with industry trends and insights.
This field is for validation purposes and should be left unchanged.