Week of May 30, 2016
- Oil prices rose above $50/bbl last Thursday for the first time since November 2015 before falling back slightly to end the week.
- IHS expects Brent to average $50/bbl in Q3 2016 and $52/bbl in 2017.
- A strengthening US dollar remains a significant factor in keeping oil prices up.
- OPEC meets next week, but an agreement to put a ceiling on production is not expected.
- US crude inventories fell by 4.2 mm bbl last week mainly due to falling oil imports.
- Alberta oil sands remain largely offline due to fires in the region, taking 1 mm bbl/day off the market.
- Natural gas prices are low at $1.92 /mm BTU and will stay low until hot weather increases the demand for electricity.