If folks take notice, not only is WTI rising, but shares of oil companies are also hitting new 52-week highs. The "stock market" usually "looks" out about six months, "they" say.
Right now, there's a bit of a perfect storm with WTI pricing:
- rebalancing has apparently already begun a bit, simply due to the usual market "supply and demand" conditions
- this comes despite some countries producing at record levels (notably Saudi Arabia and Norway)
- there is a bit of a short squeeze to be factored in (a lot of folks felt the situation was such, the price of oil would drop further; as it goes up, it creates a big a short squeeze on those who had bet "against" oil)
- the talk of the late September OPEC meeting
Later, let's see what the pros wrote about WTI. I wrote my post about an hour ago (the date/time stamp will have the exact time. The note below was started at 4:10 p.m. Central Time, same day, from Investors.com/Yahoo!Finance. Data points:
- Brent oil topped $50 / bbl for first time in six weeks
- continued optimism that top oil producers will agree to cap output next month
- US shale firms place more bets on a booming formation in Oklahoma
- Jones Energy is joining CLR in Oklahoma: Jones will acquire 18,000 net acres for $136.5 million ($7,600/acre)
- companies are rushing to take advantage of the new plays as production in North Dakota's Bakken falls off
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