And we are off. Euro slips below on 1.33 and trades at 1.3282 a new two week low, primarily on Greece. The crude rally stalls and WTI heads toward 86.0 while Brent slips to mid 85. Given the upcoming weekend, we should see steady profit taking and an increasing pressure on crude oil prices as…Read more
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Risk Applications and Frameworks: Dedication
Risk Applications and Framework went to print today. This is the third book we have sent to print this year. The first one (Reboot) took three years. Every new effort gets easier and easier. Full credit for this “Just Ship It” goes to Uzma Salahuddin and Agnes Paul on the content, editing and production side…Read more
Crude oil prices outlook: market liquidity and trading volumes
More from Nauman’s note at InvestBank The Crude oil market like any other financial market is also a function of available liquidity in the system. Considering trading volumes as a proxy to the market liquidity, there was a marked increase observed in oil trading volumes during the later part of 2006, leading to an increase…Read more
The central bank of oil
Great article in FT describing Saudi Arabia as the central bank of oil, targeting physical availability of crude oil versus price levels, the resulting central bankerisque inaction and its impact on future crude oil prices. I was wondering what would happen to this role when Iraq is done bringing its 12 million barrels of production…Read more
Crude Oil Price outlook: Euro breaches 1.34, oil to head lower?
Crude Oil broke through 86 yesterday. Today Euro broke through 1.34 against the USD and hit 1.3357 USD per unit, according to WSJ. Part of the slide was Europe opening up after the Easter break, but what does this mean for oil? At this rate the translation effect we all speak off (what does a…Read more
Regional crude oil prices move up – Murban and Zakum now pricier by 5%
ADNOC (Abu Dhabi National Oil Company) raised prices for its crude blends by about 5.5% for customers in the US and Asia, following the lead of Saudi ARAMCO. Crude oil sold by ADNOC is shipped and delivered first and the price is set at the end of the each month by ADNOC. This price change…Read more
Crude oil prices: Heading up or down?
Are crude oil prices heading up or down – what do future spreads say
The relevance of North Sea Oil, Offshore drilling and Crude Oil Bulls.
Leo at Peace Corp Writers provides an interesting perspective on incremental drilling, marginal pricing and the relevance of North Sea Oil in understanding the current sentiment around crude oil prices. His pitch is simple. Demand is static, focus and fix the supply side to control oil prices.
Crude oil price outlook – truth or dare?
The smart money in the room is on Saudis. These guys produce between 10 – 12.5 million barrels of crude every day. They have been playing, setting and influencing the market for more than 40 years. They own the swing vote on production right now till Iraq catches up. Two words (production cut or production…Read more
In the news today – Will offshore drilling in the US change wellhead prices as well as retail gasoline
No. The FAIR blog says it will take about a decade for even the trivial impact to flow through. Also see the slightly dated but still relevant Failing to do the Math on Oil entry at the same blog