Crude Oil Production in the United States increased to 9238 BBL/D/1K in July from 9097 BBL/D/1K in June of 2017 confirming that price elasticity is strong in the oil market and endless potential supplies are ready to compensate for any attempt by OPEC to squeeze supply.
The number of electric vehicles on the road rocketed to 2 million in 2016 after being virtually non-existent just five years ago, according to the International Energy Agency.
Registered plug-in and battery-powered vehicles on roads worldwide rose 60 percent from the year before, according to the Global EV Outlook 2017 report from the Paris-based IEA. Despite the rapid growth, electric vehicles still represent just 0.2 percent of total light-duty vehicles.
A significant breakdown took place today on Gold prices which indicates further weakness ahead.
As can be seen from the first chart below, the upward trend line that has been in place since December 2016 was broken today after a failed break to the upside of the consolidation in place since September 2017.
Reports of deep-sea drilling’s demise in a world of sub-$100 oil may have been greatly exaggerated, much to OPEC’s dismay.
Pumping crude from seabeds thousands of feet below water is turning cheaper as producers streamline operations and prioritize drilling in core wells, according to Wood Mackenzie Ltd.
Oil rose 3.23 % last week reaching our first technical target at 55.6 on WTI. Back in May, several OPEC oil ministers were talking quite casually about $50 a barrel as a good price for crude. Don’t expect that to be repeated when they convene again at the end of this month.
OIL DEMAND IN CONTRACTION
As oil prices sag despite OPEC’s renewed efforts to shore up world crude markets, Wall Street banks have more bad news for the producer group: the outlook for next year isn’t great either.
EXXON, ROYAL DUTCH and CHEVRON are jumping into American shale with gusto, planning to spend a combined $10 billion this year, up from next to nothing only a few years ago.
The giants are gaining a foothold in West Texas with such projects as Bongo 76-43, a well which is being drilled 10,000 feet beneath the table-flat, sage-scented desert, and which then extends horizontally for a mile, blasting through rock to capture light crude from the sprawling Permian Basin.
Oil barely budged on Friday as OPEC agreed to extend oil supply restraint until the year-end.
OPEC’s in a quagmire however, foreshadowing disappointment for oil bulls counting on the group and its allies extending output curbs by nine months, according to Goldman Sachs Group Inc.
Saudi Arabia’s proposal to prolong cuts from their current expiration on March 31 through to the end of 2018 hasn’t been easily endorsed by Russia, which provides the second-largest share of reductions..
The first half fo 2017 was an eventful period for commodity traders.
OIL fell 14 % over the half year, losing back almost all the ground gained since the OPEC agreement in December. The 7 % rise of last week akin to window dressing as oil companies and traders alike are long the commodity and do not want to show too heavy losses.
This time last year, equity markets were contemplating the abysses, bonds were making new Lows in yields, Gold was rallying and Oil was trading at US$ 29.
Market psychology was mired in fears of deflation and central banks were busy telling the markets that interest rates would not go up.