Oil futures climb by more than 5%
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Started by metmike - Feb. 16, 2019, 5:54 p.m.

Oil futures climb by more than 5% for the week    

https://www.marketwatch.com/story/oil-prices-gain-with-brent-headed-for-5-weekly-climb-amid-signs-for-supply-moderation-2019-02-15

U.S.-China trade talk progress, signs of falling crude output lifts WTI prices to 3-month high

"The Organization of the Petroleum Exporting Countries earlier in the week reported its crude output had come down by nearly 800,000 barrels a day in January to average 30.81 million barrels a day, with the bulk of the cuts coming from Saudi Arabia. The International Energy Agency’s monthly oil market report, also released this week, reported the Saudis had cut production by 400,000 barrels a day last month, to average 10.24 million barrels a day.

 

The de facto OPEC leader, Saudi Arabia, pledged earlier this week to cut output further in the coming months, according to the Financial Times (paywall), citing oil minister Khalid al-Falih, who said the country would cut an additional 500,000 barrels a day to take production to 9.8 million barrels a day in March. "


Comments
By metmike - Feb. 16, 2019, 6 p.m.
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joj is generously sharing his trading thoughts with us:

https://www.marketforum.com/forum/topic/23918/

By Richard - Feb. 16, 2019, 9:19 p.m.
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I'm long 2 wtic futures and 2 mini wtic futures and loving it. I really believe this is the real deal and that we will see $100 this year.


By Jim_M - Feb. 17, 2019, 11:50 a.m.
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Being dragged higher by Brent.  There are no shortages in the US.  There is abundance and more is coming.

https://finance.yahoo.com/news/nothing-seems-stopping-america-apos-140600006.html 

Jim
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By Richard - Feb. 17, 2019, 8:36 p.m.
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Do you really believe that the US can increase production to 20 million per day or even 30 million per day to satisfy the entire planet earths growing need for oil over the coming years? The low is in. We will never see sub $50 oil in our lifetime. I told you we were over bought at $72, and now your telling me it aint going back to $100? haha. We will see $100 this year.

Re: Jim
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By metmike - Feb. 17, 2019, 9:55 p.m.
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That's what makes markets........buyers believe prices will go higher, sellers think prices will go lower.

For every transaction, there has to be 1 of each. 

Luckily, opinions are free and very welcome here!

India
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By Richard - Feb. 19, 2019, 10:55 a.m.
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Who is going to supply India with all the OIL they need?

***************

India's Oil Consumption in January Grows Fastest in Six Months Oil consumption in India continued to recover, posting a second month of growth as the country emerged from a credit crunch that slowed economic activity toward the end of last year.

• India’s total usage of oil products increased 6.4 percent to 18.34 million tons in January from 17.23 million tons a year ago, according to theoil ministry’s Petroleum Planning & Analysis Cell.

• After 11 straight months of gain, India’s oil demand declined for three months in second half last year following a spike in domestic fuelprices, a liquidity crunch and slowing vehicles sales. Oil demand recovered in December to rise 3.9 percent from a year ago.

• Demand for transportation fuels is likely to pick up as India holds elections this year, leading to an increase in travel activity for campaigning. The recent populist federal budget and a rate cut by the central bank are likely to boost consumption, which may lift vehicle sales.

• India’s oil demand growth is expected to surpass China this year driven by transportation and cooking fuels, according to Wood Mackenzie. (Bloomberg)

Re: India
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By Jim_M - Feb. 20, 2019, 11:45 a.m.
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There better be some substantial withdrawal in the API tonight or the EIA tomorrow.  Seems like there is a lot of expectation being built into crude prices over the last couple days.  With the US approaching 13MMBls a day, 1.2MMBls (or whatever the paltry number is)  less from OPEC isn't going to cut it.