Frac Spread: Consistently Unpredictable
The only certainty in the current commodity markets is that things will remain uncertain for the near term.
Frac Spread: Turbulence Ahead
As uncertainties abound in the crude market, it’s likely that gas and liquids markets could experience more volatility.
Frac Spread: Time For A Pricing Change?
There is growing sentiment that the market has decided enough is enough and decided to set a floor for crude prices.
Frac Spread: Minor Movements
Commodity prices continue to stutter with modest improvements, though a warm summer could spur a stronger back end of the year.
Frac Spread: Crude Awakening
WTI prices improved this week after hitting a 12-year low, but challenges remain as Iranian crude re-enters the global market.
Frac Spread: Declining Results
Prices continue to search for a bottom even as heating demand increases.
Frac Spread: No Room To Move
Gas prices are expected to have limited volatility in 2016 due to a tight ceiling and floor.
Frac Spread: The Market Strikes Back
There are many reasons for the negative outlook for prices, but the primary one is that markets are oversupplied across the board. It is impossible for liquids, crude or gas prices to improve for very long because supplies are saturating each of these markets.
Frac Spread: Downward Spiral Continues
OPEC’s decision to continue all-out production placed further downward pressure on commodity prices as West Texas Intermediate (WTI) crude prices fell to $36.75 per barrel (/bbl) on Dec. 10. This is close to the low for the year and it is expected that this will help curtail production enough that the market could begin to rebalance by the fourth quarter of 2016, according to Barclays Capital.
Frac Spread: Futures Uncertain
It is possible that prices could grow further in the short-term, but the near-term outlook is still negative as prices are still challenged due to oversupply.