It appears that the Saudi oil GLUT is taking its toll...Texas, U.S. rig count declines

[Vigilante]

Oil currently trading at $49.95 a barrel....

Fuel Fix ^

The number of rigs operating in the United States declined by 29 last week to 1,811, marking the fourth consecutive weekly decrease for the U.S. count, published by oil field services company Baker Hughes. Texas, which has more rigs than any other state, also experienced the biggest drop, from 852 to 840. The latest figures combine with last week’s decline of 35 to mark the largest two-week drop in the U.S. rig count since 2009. The North American rig count was down 77 for the week to 2,019 rigs, according to the study. The declines come at a time when...

 

[Moonglow]

Now is the time to start buying stock in oil companies...

 

[HenryBHough]

Once oil exploration has been shut down Obama's EPA will make it impossible for it to resume. Then OPEC can rape and pillage as much as they like.

You're being played and smiling about it.

For now.

 

[Moonglow]

Once oil exploration has been shut down Obama's EPA will make it impossible for it to resume. Then OPEC can rape and pillage as much as they like.

You're being played and smiling about it.

For now.

Love those dagger politicos.

 

[Brain357]

Once oil exploration has been shut down Obama's EPA will make it impossible for it to resume. Then OPEC can rape and pillage as much as they like.

You're being played and smiling about it.

For now.

I'm not so sure oil will come back like it was. I think alternative fuels are hurting oil. Look at how popular the Prius is and they get 50 mpg. Saudi is up to something though for sure.

 

[waltky]

Stocks futures sharply higher as oil extends gains...

Wall St lifted by muscular oil rally but some still skittish
22 Feb.`16 - Wall Street surged on Monday, helped by a robust rally in oil prices that lifted recently crushed energy stocks, including Chevron and Schlumberger.

As it has for months, Wall Street followed the lead of global oil prices in a trend that has left the S&P 500 down 5 percent so far in 2016, following a partial recovery last week. Monday's stock gains were as broad as they were strong, with all 10 major S&P sectors finishing higher, but investors shell-shocked by this year's market turbulence remained wary. "You still have concerns about China and where growth goes there, and that's why you're still going to have this volatility," said Kurt Brunner, portfolio manager at Swarthmore Group in Philadelphia. "We're still going to have considerations about heavily indebted energy companies going into default."

U.S. crude prices settled up more than 6 percent but still remained around decade lows, while prices of industrial metals such as copper and zinc rose as investors worried about potential shortages. The Dow Jones industrial average <.DJI> jumped 1.39 percent to end at 16,620.66 points. The S&P 500 <.SPX> gained 1.45 percent to 1,945.5 and the Nasdaq Composite <.IXIC> added 1.47 percent to 4,570.61. The S&P energy sector <.SPNY> rose 2.23 percent, boosted by Chevron's <CVX.N> 2.68 percent increase. Shares of oilfield services provider Schlumberger closed up 2.06 percent.

The materials sector <.SPLRCM> rose 1.87 percent. Alcoa <AA.N> and Freeport-McMoRan <FCX.N> were the biggest influences, both surging over 13 percent. Recent turmoil in global markets and macroeconomic uncertainty has left investors split over whether the U.S. Federal Reserve will raise interest rates this year. Among S&P 500 companies, there have been 75 negative EPS pre-announcements for the first quarter, compared to 16 positive pre-announcements, according to Thomson Reuters I/B/E/S.

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[waltky]

Oil prices dip, then spike as result of oil producers meeting...

Oil prices dip on continued oversupply, despite news of meeting to freeze output
Thu Feb 25, 2016 - Crude oil prices dipped on Friday as reports of a meeting by oil producers to freeze output failed to convince traders that enough effort was being made to rein in ballooning global oversupply.

The drop in prices came after oil markets rose late on Thursday on the back of strong U.S. gasoline demand and what ANZ bank called a "perennial hope that OPEC members can coordinate supply". That hope was stoked by reports that OPEC-members Saudi Arabia, Qatar and Venezuela, as well as non-OPEC producing giant Russia, would meet in March to discuss capping crude oil production at January levels. But the rally did not last into Friday as traders estimated that a freeze in production would not reduce a glut that has pulled down prices by 70 percent since 2014.

International Brent crude futures LCOc1 were trading at $35.11 per barrel at 0429 GMT (11:29 p.m. ET), down 18 cents from their last settlement. U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 5 cents at $33.02. "Capping production at January levels, when the market was pumping out well over a million barrels of crude a day above what consumers need, will in no way reduce overcapacity. In fact, given that Iran has started to return to markets since January, it'll worsen the glut," said one senior oil trader. Iran is hoping to increase its crude exports by 1 million barrels per day within the next year after international sanctions against it were lifted in January. The sanctions had cut Iran's exports by more than half from a pre-sanctions peak of almost 3 million barrels per day in 2011.

Despite the glut, prices received some support this week from strong demand for gasoline, especially in the United States. "The idea that gasoline demand is actually rising suggests that perhaps the lower prices of crude are actually prompting a greater usage of this product (gasoline)," said Vyanne Lai, oil analyst at National Australia Bank. But analysts said that strong appetite for gasoline was unlikely to last as the United States and Europe move into the low-demand spring season.

Oil prices dip on continued oversupply, despite news of meeting to freeze output

See also:

Oil prices spike on output meeting
25 February 2016 - Oil prices have reversed losses following a confirmation of a meeting between big oil producers in March.

Venezuelan officials confirmed that Russia, Saudi Arabia and Qatar have agreed to meet next month. Oil prices have tumbled 70% since mid-2014 due to a excess of supply and sluggish demand.

Earlier this month Saudi Arabia and Russia agreed to freeze oil output at January levels. But there's scepticism over what they can achieve. "It's the Venezuela headline that got the market excited enough to rebound, though it's baffling why as everyone knows of this meeting and that it's not going to achieve anything," said John Kilduff, partner at Again Capital, a New York energy hedge fund.

Saudia Arabia has been maintaining its level of oil production, despite falling prices, in a move designed to force higher-cost producers out of the market. But that's been very costly for nations that rely on revenue from oil, so there's pressure for Saudi Arabia and other big producers to co-ordinate a cut in production. At around 19:30 GMT, North Sea Brent Crude was trading at $35.55 a barrel, up $1.14 or 3.3%.

Oil prices spike on output meeting - BBC News

 

[waltky]

Fill `er up a-fore gas prices go up - oil glut may be coming to an end...

Oil prices rise, signs mount that market is bottoming out
Sun Feb 28, 2016 - Crude futures rose in early trading on Monday after gaining over 15 percent last week, with some indicators pointing to the possibility the market is showing signs of bottoming out.

International Brent futures LCOc1 had climbed around half a dollar, or 1.4 percent, from their last close to $35.58 per barrel at 8.41 p.m. ET on Monday. U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 18 cents at $32.96 a barrel after gaining over 15 percent the previous week. Analysts said that first signs of a strengthening market outlook were appearing after a 20-month rout that has seen prices fall by 70 percent. "The U.S. crude market also seems to have passed the worst point and crude runs should start creeping higher taking pressure off inventory levels. The latest EIA data on U.S. production is also supportive as it indicates that the low prices are finally having an impact," said Richard Gorry, director of JBC Energy Asia.

A worker checks the valve of an oil pipe at the Lukoil company owned Imilorskoye oil field outside the West Siberian city of Kogalym, Russia​

But he added that there was also "still a lot of downside risk" due to the huge overhang in production and stored supplies. "The Russian/Saudi production freeze talks continue to support the market, while in the U.S., shale producers continue to pull rigs from the ground in an effort to reduce spending. Baker Hughes data suggest U.S. oil rig counts fell by 13 to 400," ANZ bank said. Market data also suggests early signs of shifting sentiment. The amount of open positions in WTI crude contracts that bet on a further fall in prices has fallen over 17 percent since mid-February to their lowest level in 2016, although by historic levels their amount remains high.

At the same time, financial speculators have sharply raised their bullish bets on oil after talk of a global production freeze and signs of falling U.S. shale crude output and growing gasoline demand. Money managers raised their combined net long position in crude futures and options in New York and London by nearly 16 percent for the week ended Feb. 23, data by the U.S. Commodity Futures Trading Commission (CFTC) showed. "The increase in speculative net longs in the CFTC report certainly reflects some traders' belief that oil has put in a near term bottom after the 20-month long selloff," said Chris Jarvis, analyst at Caprock Risk Management in Frederick, Maryland.

Oil prices rise, signs mount that market is bottoming out