5 Jan 2015
Oil shows some signs of flattening out – Malcolm Graham-Wood
FXStreet (Barcelona) - Independent Analyst, Malcolm Graham-Wood, explains that Oil prices are showing some signs of flattening out but there is not strong indication that the fall is over.
Key Quotes
“And as we enter the new year there is no sign that the fall is going to be arrested any time soon, we do see signs of some ‘flattening out’ but there is no magical safety net nor any reason to construct one.”
“On Friday statistics for December showed that Iraq exported 2.94m b/d, its highest since 1980 and Russia was up too, albeit modestly but still at a post Soviet high of 10.667m b/d.”
“These two figures alone are enough to worry exporters and companies alike but also serve to prove that not only is there no discipline but that price is not an issue, at least for the time being.”
“With a stealthy increase in US exports via the condensate route and abundant natural gas often as a by-product of drilling for liquids, there is little obvious production cessation over there and there will need to be some big falls in the BH rig count to make a dent in North American production of gas or liquids.”
Key Quotes
“And as we enter the new year there is no sign that the fall is going to be arrested any time soon, we do see signs of some ‘flattening out’ but there is no magical safety net nor any reason to construct one.”
“On Friday statistics for December showed that Iraq exported 2.94m b/d, its highest since 1980 and Russia was up too, albeit modestly but still at a post Soviet high of 10.667m b/d.”
“These two figures alone are enough to worry exporters and companies alike but also serve to prove that not only is there no discipline but that price is not an issue, at least for the time being.”
“With a stealthy increase in US exports via the condensate route and abundant natural gas often as a by-product of drilling for liquids, there is little obvious production cessation over there and there will need to be some big falls in the BH rig count to make a dent in North American production of gas or liquids.”