Oil traders are still awaiting more definitive clues about the supply/demand balance, but volatility is likely to stick around for a while. In the short run, oil prices will likely follow global stock markets up or down on any given day until the fundamentals reveal a more discernable pattern.
Iran’s oil exports are likely to remain limited in 2019, with a significant negative impact on Iran’s economy.
Saudi Arabia has its problems but it could withstand lower oil prices without feeling too much of a pinch.
A price increase from current levels hinges on action from OPEC+. Saudi Arabia has already signaled that it intends to lower exports by 500,000 bpd in December, and that further action might be forthcoming from OPEC+.
If the US shale oil industry is still not profitable – after a decade of drilling, after major efficiency improvements since 2014, and after a sharp rebound in oil prices – when will it ever be profitable?
Oil prices posted steep losses just as the bulls were back on the march. WTI briefly topped $70 per barrel in recent days and Brent was flirting with $80. But the rally was kneecapped by a variety of factors, and it could be challenging to break above those key pricing thresholds in the near future.
Unlike Canada's oil sands, characterized by vast toxic tailings ponds and environmental destruction, Petroteq has pioneered a breakthrough approach to oil sands production that minimizes the environmental impact.
The future of energy belongs to new tech, and investors hoping to score should look to these exciting new firms for some of those solutions.
A healthy appetite for crude, combined with an unexpectedly high level of compliance has stabilized markets. The threat of higher oil prices culling demand is still very low but will be looming on the horizon.
Higher production doesn’t necessarily mean higher oil prices are entirely out of the question, and in fact, the oil market is still faced with a ton of uncertainty.