What Apple's Tailspin Means For Oil Prices

Crude Oil

That wrong-footed OPEC with Saudi Arabia and Russian Federation both pumping more than 11 million b/d at that time in a bid to offset the risk of lost Iranian barrels and left the market awash with crude. The U.S. administration on January 7 expressed optimism it can reach a "reasonable" trade deal, and Trump has given Trade Representative Robert Lighthizer until March 1 to negotiate an accord. The global benchmark crude traded at an $8.61/bbl premium to WTI for the same month.

West Texas Intermediate for February delivery increased as much as 44 cents to $48.96 a barrel on the New York Mercantile Exchange, and traded 2 cents higher at $48.54 a barrel at 7:45 a.m.in London.

Oil has gained almost 12 per cent since last Monday, its biggest week-on-week rally since early December 2016. "Momentum is coming back into the market from very depressed price levels", Petromatrix strategist Olivier Jakob said, according to Reuters.

Looming over the OPEC-led cuts, however, is a surge in United States oil supply, driven by a steep rise in onshore shale oil drilling and production.

Looking at oil supplies, 2019 crude prices have been supported by supply cuts from a group of producers around the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC member Russian Federation.

The API was also said to report that US crude inventories fell by 6.13 MMbbl last week. While six months may be enough to reduce the combined output of OPEC and its partners by the agreed 1.2mn bpd, if U.S. production continues to grow at the current rate, it would likely offset this cut completely. The further trim of January's exports are expected to be felt mostly in the USA market.

Radio calls of Cody Parkey’s missed field goal is absolutely heartbreaking
Video shows that Hester actually tipped Parkey's kick, affecting its path and quite likely leading to its miss. I didn't make it. "When I saw it going in, I turned back around (away from the goal posts)".

Meanwhile, American crude stockpiles probably declined by 1.75 million barrels last week, according to a median estimate in a Bloomberg survey of analysts ahead of government data on Wednesday.

Easing US-China trade tensions would underpin oil at current levels. Disruptions to trade undermine prospects for economic growth and oil demand.

"The dynamics of oil prices in 2019 will also depend in large part on Opec's effectiveness in implementing the cuts, balancing the market and reinforcing the credibility of its signals", said the report.

S&P Global Ratings said it had lowered its average oil price forecasts for 2019 by $10 per barrel to $55 for Brent and $50 per barrel for WTI.

Societe Generale cut its 2019 oil price forecast for Brent by $9 to $64 a barrel and reduced its forecast for USA light crude by $9 to $57 a barrel.

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