Market Insights

February 3, 2017 • Posted in Market Insights

Week of January 23, 2017

  • Oil closed virtually unchanged from last week in a volatile week of trading
  • The U.S. Energy Information Agency reported a 2.3 mm. bbl. increase in crude inventories and a 6 mm. bbl. build in gasoline stocks
  • Despite building inventories, US oil producers are bullish as indicated by a 29-rig increase in the weekly US active rig count, bringing the active oil rig count to 551
  • Continuing increases in U.S. production are likely to test the resolve of OPEC members to stick to their targeted 1.8 mm. bbl. / day production cuts
  • OPEC claims that 1.5 mm. of the 1.8 mm. bbl / day total has already taken out of the market
  • Natural gas is hovering around $3.30 per MMBtu NYMEX, despite a strong inventory draw of 243 Bcf, based on a warmer winter weather forecast

 

WTI Crude Oil & Brent Crude Oil 012317

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