Mid-Week Review

Wild price swings may be the new normal for crude oil markets as US, Russia and Saudis vie for influence

The three largest oil producers are locked in a new world order that could mean more volatile crude oil prices. The U.S. has become the world’s largest producer, and U.S. production has become a major factor in world supply. Russia, Saudi Arabia and OPEC may wait to act after U.S. sanctions on Venezuela. A rush to add supply ahead of Iran sanctions led to prices cratering.  Click here to read more from CNBC.

3 Reasons This Oil CEO Is Bullish on the Second Half of 2019

Oil prices have been all over the map in the past year. Crude rallied 30% during the first nine months of 2018 before falling off a cliff and plummeting 40% over the final three months, finishing the year down 20%. Oil has since started staging a comeback and was recently up double digits from the bottom. Crude could continue to be volatile in the coming months as the market self-corrects. However, in the view of oil reservoir specialist Core Labs (NYSE:CLB), the oil market appears poised to bounce back during the second half of 2019. CEO David Demshur offered three reasons on his company’s fourth-quarter conference call he believes that will be the case.  Click here to read more from the Motley Fool.

OPEC’s Oil Princes Are Fighting For Survival

The already strained relationship between U.S. lawmakers and two of President Trump’s staunchest supporters, Saudi Crown Prince Mohammed bin Salman and Abu Dhabi’s Sheikh Mohammed bin Zayed, seems to be worsening. In recent days, reports have indicated that a growing number of U.S. congressmen and women is expected to pass a resolution which will end U.S. involvement in Yemen’s civil war. This resolution would represent a direct challenge to President Trump, who would then have to consider using a presidential veto. While Trump’s Middle East strategy may lack clarity, it is undeniable that both MBS and MBZ are pivotal to his influence in the region.  Click here to read more from OilPrice.com.

More stringent marine sulfur limits mean changes for U.S. refiners and ocean vessels

In yet another in a string of articles on IMO 2020, the EIA is projecting a strong tightening in diesel markets in 2020 and 2021, though the crunch normalizes in the years following. Because marine vessels move 80% of global trade by volume, higher marine fuel prices will have a direct impact on shipping costs and product prices. Given the relative sophistication of US refineries, America will be expected to help the world meet the call for more low-sulfur marine fuel, increasing exports while leaving less fuel available domestically. Click Here to read more from the EIA.