Of course, this is most likely driven on speculation as drilling rigs get stacked and Big Oil continues to announce major cuts in exploration and development.
Conoco to cut $5B alone this year.
456 rigs have been stacked since this time last year, 20%.
I keep reading 20% is the cuts in oil services pricing as well, which appears to be the magic number around the industry. Cut 20% off of inflated salary scales and perhaps this industry will right size itself to hard numbers that can sustain an operation with a strong balance of highly qualified oil and gas professionals instead of private equity start-ups that are dipping their toes in the water just to test it, driving up competition for experienced personnel.
Hopefully, WTI will roll through $55 by the end of Q2, then roll into $60 by the end of Q4.
Once oil rolls into $65 to $70, the stadium upgrades will catch momentum again even if it settles around $75 imo.
I can handle a $75 price point to keep O&G jobs responsibly stable and the overall nation's economy stable.
Feedstock will be attractive for petrochemicals, airlines, land transports and vacationers looking to fill up.
Coal perhaps can return to the markets with their technologies as well.
I'm optimistic about the future, until China shale plays get online with their cheap labor, raw materials and manufacturing by 2025. Hopefully, the stadium will be built by then.
Oil prices rocket by nearly $4 a barrelNew York (AFP) - Oil prices surged by nearly $4 a barrel in late trade Friday, rebounding from six-year lows on month-end covering and signs the industry is quickly tightening exploration activities.
Oil surges 8 percent as U.S. rig count plunges, shorts scramble Reuters
At the end of the session, WTI closed at $48.24, a gain of $3.71 from Thursday.
In London, Brent North Sea crude for March followed a similar trajectory, trading slightly lower over most of the session and then soaring more than $4. The contract closed at $52.99 a barrel, a gain of $3.46.
Traders said that there was a lot of short-covering by big investors on the final trading day of the month that likely spurred the spike.
"The commodity funds have been heavily short on this market. It's the end of the month, and there is a little bit of a short-covering rally," said Phil Flynn of Price Futures Group.
"Yesterday, when oil went below $44, it couldn't follow through and it reversed course during the day, which is a signal for a bottom."
Also giving support were more signs of sharp cutbacks in the oil industry, which could portend a tighter market in the medium term.
Chevron said it would cut exploration and development spending by $5 billion this year.[/B]
And the Baker Hughes North America rig count, which gauges activity in the United States, Canada and Gulf of Mexico oil and gas fields, took a sharp fall over the past week, dropping by 128 rigs to 1,937. That compared with 2,393 a year ago.
"That's the lowest level we've seen in a couple of years. Perhaps that means tighter supplies in the future," said Flynn.
This post was edited on 1/31 7:51 AM by JMISASANO
http://news.yahoo.com/oil-price-firms-slumping-close-six-low-134418488.html
Conoco to cut $5B alone this year.
456 rigs have been stacked since this time last year, 20%.
I keep reading 20% is the cuts in oil services pricing as well, which appears to be the magic number around the industry. Cut 20% off of inflated salary scales and perhaps this industry will right size itself to hard numbers that can sustain an operation with a strong balance of highly qualified oil and gas professionals instead of private equity start-ups that are dipping their toes in the water just to test it, driving up competition for experienced personnel.
Hopefully, WTI will roll through $55 by the end of Q2, then roll into $60 by the end of Q4.
Once oil rolls into $65 to $70, the stadium upgrades will catch momentum again even if it settles around $75 imo.
I can handle a $75 price point to keep O&G jobs responsibly stable and the overall nation's economy stable.
Feedstock will be attractive for petrochemicals, airlines, land transports and vacationers looking to fill up.
Coal perhaps can return to the markets with their technologies as well.
I'm optimistic about the future, until China shale plays get online with their cheap labor, raw materials and manufacturing by 2025. Hopefully, the stadium will be built by then.
Oil prices rocket by nearly $4 a barrelNew York (AFP) - Oil prices surged by nearly $4 a barrel in late trade Friday, rebounding from six-year lows on month-end covering and signs the industry is quickly tightening exploration activities.
Oil surges 8 percent as U.S. rig count plunges, shorts scramble Reuters
At the end of the session, WTI closed at $48.24, a gain of $3.71 from Thursday.
In London, Brent North Sea crude for March followed a similar trajectory, trading slightly lower over most of the session and then soaring more than $4. The contract closed at $52.99 a barrel, a gain of $3.46.
Traders said that there was a lot of short-covering by big investors on the final trading day of the month that likely spurred the spike.
"The commodity funds have been heavily short on this market. It's the end of the month, and there is a little bit of a short-covering rally," said Phil Flynn of Price Futures Group.
"Yesterday, when oil went below $44, it couldn't follow through and it reversed course during the day, which is a signal for a bottom."
Also giving support were more signs of sharp cutbacks in the oil industry, which could portend a tighter market in the medium term.
Chevron said it would cut exploration and development spending by $5 billion this year.[/B]
And the Baker Hughes North America rig count, which gauges activity in the United States, Canada and Gulf of Mexico oil and gas fields, took a sharp fall over the past week, dropping by 128 rigs to 1,937. That compared with 2,393 a year ago.
"That's the lowest level we've seen in a couple of years. Perhaps that means tighter supplies in the future," said Flynn.
This post was edited on 1/31 7:51 AM by JMISASANO
http://news.yahoo.com/oil-price-firms-slumping-close-six-low-134418488.html