Market Insights

January 11, 2017 • Posted in Market Insights

Week of January 9, 2017

  • Brent rose $0.97/bbl to $56.13 as Saudi and Iraq output cuts went as planned
  • A stronger US dollar and higher output from Libya and Iraq’s Kurdish region slowed the rise
  • The US dollar is strong due to an upward revision in October and November US job growth figures and reports the Fed is planning 3 rate hikes in 2017 instead of 2
  • WTI closed up at $53.99 on a 7+ MM bbl drawdown in US crude inventories
  • Concern over a rise in downstream distillates inventory stopped any further price rise
  • The US oil rig count rose by 4 to 529 last week
  • Many analysts expect US drillers to continue to ramp up production because they have cut costs and continued to improve technology and are now profitable above $50/bbl
  • Natural gas fell to $3.30 per MMBtu NYMEX on weaker inventory draws

WTI Crude Oil & Brent Crude Oil 010917

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