In the week since our last edition of What’s Affecting Oil Prices, brent rose $4.50/bbl last week to average $59.93/bbl. WTI rose $4.22/bbl to average $50.97/bbl. While recent price increases are a positive sign, gains are very tenuous and prices could easily backslide on concerns about demand. This week “earnings season” starts and markets will be closely watching for company concerns about consumer spending. For the week ahead, we expect Brent to average $61/bbl.
In an effort to support prices, Saud Arabia announced it would cut production above and beyond its original agreement. This Friday, Jan. 18, the IEA will release the first Oil Market Report since the official supply deal. The IEA will report on current compliance levels and anything lower than full compliance will likely cause prices to dip.
The U.S. government shutdown is still ongoing, and thus NYMEX positioning data is not being released. However, Brent data indicates that growth in short-positioning has started to slow.
Geopolitical: Neutral
Dollar: Neutral
Trader Sentiment: Neutral
Supply: Negative
Demand: Neutral
Refining Margins: Neutral
How We Did
Recommended Reading
Dividends Declared Week of Nov. 18
2024-11-22 - Here is a compilation of dividends declared in the week of Nov. 18 from select upstream and service and supply companies for fourth-quarter 2024.
Exclusive: Why Family Offices Favor ‘Lower-Risk’ Oil, Gas Investments
2024-11-22 - Evan Smith, Stephens’ senior vice president for investment banking, describes growth in the company’s network of family offices, specifically those investing in the energy sector, in this Hart Energy Exclusive interview.
Energy Sector Sees Dramatic Increase in Private Equity Funding
2024-11-21 - In a 10-day period, private equity firms announced almost $20 billion in energy funding. Is an end in sight for the fossil fuel capital drought?
Expand Energy Announces $500MM Tender Offer for 2026 Notes
2024-11-20 - Expand also issued a conditional notice of redemption for all of its outstanding 8.375% Senior Notes due 2028.
Vistra to Offer Senior Notes for Equity Interest Repayment
2024-11-19 - Vistra Corp. said the proceeds from the offer will be used toward an early payout for the installment purchase of Avenue Capital Management II’s interest in Vistra Vision.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.