Mid-Week Review – May 6, 2020
Oil Resumes Rally with Prices Doubling Over Last Five Days
Futures in New York rose above $25 a barrel after earlier breaking above their 50-day moving average for the first time since January. Russian oil production was down 16% in the first five days of May, Interfax reported, while Plains All American Pipeline LP sees close to 1 million barrels a day of Permian shut-ins in May.
Shale Producers Hint at Possible Fracking Revival at $30 Oil
A pair of prominent shale producers said all they need is oil around $30 a barrel to consider bringing back curtailed crude output and fracking new wells.
Too Cold for an Oil Cut? Russia’s Move Reveals a Long-Running Bluff
Moscow long rejected OPEC’s pleas to reduce output, citing its frosty climate as an excuse. Now, facing a glut, the country is closing wells, many in the Arctic.
Canadian Oil Sees Its Smallest Discount To WTI In 12 Years
Due to ongoing production cuts from Canadian oil producers and to increased storage capacity, the price of Canada’s heavy oil soared early this week to its smallest discount to the U.S. WTI Crude futures in at least 12 years, data from NE2 Group and Bloomberg showed.
This article is part of Daily Market News & Insights
Tagged: Canadian Oil, oil prices, Russia, Shale, WTI
MARKET CONDITION REPORT - DISCLAIMER
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.
