Brent briefly broke $75 to 6 months high at 75.60 on supply tensions before retreating to below $70 on trade tensions
Brent has rallied the past month buoyed by voluntary and involuntary cuts to production. However, demand-side concerns are starting to weigh on traders’ minds as global economic forecasts continue to weaken.
Happy Chinese New Year everyone, welcome to the year of the Pig!
First off, a quick reminder for those living in Singapore that you can now move away from SP Services for your home electricity supply and move to iSwitch. Significant savings available at the iSwitch website.
Crude price dips below $50 at end December 2018, hitting a 16-months low on supply concerns, before rebounding back above $60.00
Happy New Year! Is it just me or does January feel like an excruciatingly slow month? Hours just chipping away as I await the arrival of Chinese New Year and the inevitable demise of my new year’s resolution. I aimed for 10% body weight loss by June and to reward myself for penning this down (more like a mental note), I’ve rewarded myself with a month of buffets and drinks.
Speaking of gains, Brent has finally rebounded back above $60.00 after months of tormenting the oil bulls. I guess $50.00 oil is just too good a value to pass up for the traders out there as everyone just starts asking themselves: “How much lower can it go?”
Crude price continues to hit new lows as worries of supply glut and waning demand looms.
Merry Christmas!!! Hope you enjoyed the month as much as the oil bears did. Oil prices went on a bumpy ride as December turned out to be a hectic month; OPEC meeting, the on/off relationship between China and US, Canada unexpectedly cutting production and Brexit.
After the historic volatility experienced last month, November USEP turned out to be relatively tame averaging at $114.
What a month it has been for USEP in October! Never before seen price volatility in the market brought last month to close at $154.02 average after multiple power generator trips during the first week of October and high prices persisting into the month. Much like the calm after the storm, November is projected to end off mildly in the mid $113s.
Brent briefly touched $86.74, a level not seen since October 2014, before retreating to August levels.
Winter is coming. No, not a reference to Game of Thrones. No, it’s also not just a literal reference as we march on into November. It’s a metaphorical winter for all the oil bulls out there. Barely a month ago, the market was teeming with oil optimism, with traders banking on ever rising oil prices. Even $100 oil wasn’t out of the question as volume for $100 Brent call options went through the roof. Then the roof collapsed and took the floor along with it. Over the span of 3 weeks, Brent crude drop about $10.00.
If someone were to whack me in the head last month (not saying that anyone should) and send me into a time specific 1-month coma, I would pretty much wake up to a similar oil environment. Headline of the day is still Trump versus……everyone, Iran sanctions are still on, Venezuela is still crumbling. The only new thing is the hurricanes.
One of the best headlines I read this month was “Trump in a tug of war with Trump”. It initially sounded ridiculous but made more sense when I stared deeper into the abyss. The bulls are relying on Trump for a tough stance on Iranian sanctions and devoid 2 million bpd of supply while bears are relying on Trump to continue firing shots at China (and the rest of the world) and dampen oil demand.
Happy Birthday Singapore! For the oil bulls it seems that was the only celebration this month. Trump continues his crusade against China, Iran, Russia, Turkey, Mueller, CNBC, New York Times, my neighbour’s poodle and the list goes on and on. As much as I want to resist it, my monthly newsletters just seem to be becoming a political commentary for Trump. Alas, we do not live in a perfect world and the oil market does not react to the more interesting topics such as how well Singapore is doing for the Asian Games.
Brent Crude Oil Prices: Oil reached 2 months high of $79.70 before retreating to low of 70.30, a level not seen since April.