But if Iran withdrew, that would leave a substantial gap in the market. In any case, the oil price is likely to remain high because global demand is so strong. |
I think the oil market is in for a period of consolidation for a few days. |
I understand that some of the demand from fabricators has fallen away as the price has risen. |
I'm inclined to think it's not reached a peak yet. |
I'm inclined to think it's not reached a peak yet. We're still faced with a tight supply-demand equation against the backdrop of strong economic growth, and there's still more money to come into the market. |
Inventories are at pretty comfortable levels based on a milder weather outlook, so the chances of a squeeze on supply this (northern) winter are receding. |
Iran and Nigeria are providing a double disruption to the crude oil market, emphasizing that the oil market remains in no condition to play a man or more short. |
More sugar coming onto the market will lower prices. |
Nigeria?s escalating problems though are boosting prices too. Nigeria puts almost 2.5 million barrels of crude into the market daily -- around 3 percent of global oil output. |
Nigeria's escalating problems ... are boosting prices. Nigeria puts almost 2.5 million barrels of crude into the market daily -- around three percent of global oil output. |
Nigeria's escalating problems … are boosting prices. Nigeria puts almost 2.5 million barrels of crude into the market daily — around 3 percent of global oil output. |
Nigeria's escalating problems though are boosting prices too. Nigeria puts almost 2.5 million barrels of crude into the market daily — around 3 percent of global oil output. |
Ordinarily comfortable inventories would mean lower prices -- probably closer to fifty-five dollars. But the Iran situation, and several smaller actual interruptions to crude supply, are keeping prices higher. |
Something that could have squeezed supply a bit tighter would be a sustained cold snap and there just hasn't been the cold weather in the U.S. yet to test out just how well the market can supply. |
That would give silver a real push. |