Month: June 2020

You’re Hot Then You’re Cold…

Just last week we reported that JP Morgan was predicting $100 Oil “in the observable future” and “could see the price of oil hit $190 a barrel by 2025”. Well, those predictions have been revised in the past week and now they predict “oil may never hit $100 again” as a result of the price war, the ongoing pandemic, decimated demand, and U.S. Shale resilience. Talk about being indecisive! In other more exciting news, two leading oil price reporting agencies launched a new U.S. crude benchmark to rival WTI, how cool!

Post-COVID Global Oil Demand Series – Part 2: Freight Transport

The coronavirus pandemic has ushered in a new age and as the world begins to adjust to the new normal, demand for commodities like oil and natural gas has and will continue to change. Due to lockdown orders and social distancing guidelines, many individuals altered their in person shopping habits to online ordering. As a result, the freight industry has been able to remain busy during the pandemic ensuring goods reach their final destination in a timely manner. This demand does not appear to be going away anytime soon. Part two of our four part series on post-COVID oil demand will investigate the change in global oil demand for fuel used in freight transportation.

Unprecedented Fall of U.S. Oil

As the world continues on its long road to recovery from the global pandemic, oil demand is slowly on the rise. Unfortunately, domestic oil production is falling fast with current rates the lowest they have been since March of 2018 and predictions for July would put levels at their lowest since 2013. Has the price war and pandemic destroyed the U.S. Oil Industry?

Post-COVID Global Oil Demand Series – Part 1: Petrochemicals and Construction Materials

The coronavirus pandemic has ushered in a new age and as the world begins to adjust to the new normal, demand for commodities like oil and natural gas has and will continue to change. While individuals may not be traveling via airplane or driving their cars as much as before the pandemic, there are many goods and materials created from hydrocarbons that will continue to be a necessary staple for the reestablishment of a healthy global economy. Part one of our four part series on Post-COVID oil demand will investigate the change in global oil demand for petrochemicals and construction materials.

Monday Madness: June 15

In this episode your host Tavis speaks on a huge wave of auctions, Extraction Oil and Gas’s bankruptcy, and the major developments for the Canadian tar sands. Music: https://www.bensound.com/royalty-free-music

Not Out Of The Woods

It was a rough end to a week in oil and gas that started so well. After weeks of climbing, oil prices will experience their first weekly loss in seven weeks just as the United States announced an official recession. Things are moving forward but we are not out of the woods just yet.

Differential Price Recovery: How Regional Forces Are Bringing Benchmark Prices Back Towards Equilibrium

Financial markets attempted to buoy benchmark prices as oil and gas markets became volatile in Q1 2020. This created a disconnect in the price spreads between the NYMEX WTI futures benchmark and regional spot prices. The disconnect continued to grow at the beginning of the year until it reached a tipping point in April when prices plunged. Ultimately supply and demand at the regional level through purchasers like storage companies, airlines, and refineries will be what control the true value of crude prices and bring the market back into equilibrium.