One opinion...
Crude Oil Price Has Reached The Bottom
Flat is the new up in the oil markets. By that I mean that if oil can simply flatten out here, everyone will breathe a big sigh of relief.
While $40-$50 oil is not great for E&P economics, less volatility would enable the industry to lay plans that don't have to be adjusted every month or quarter.
It is hard to call the bottom with precision, and 4 days does not make a trend, but I am seeing some signs this week that are very encouraging. If we aren't exactly at the bottom, we are at least at a near-term plateau - oil is trying to hold its ground and flatten out here.
The chart above shows this week's trading sessions for WTI. You can see that we had significant rallies each day in the price of oil. This is a very good sign when you consider the nosedive of the prior sessions leading up to this week (see next slide).
Flat is the new up in the oil markets. By that I mean that if oil can simply flatten out here, everyone will breathe a big sigh of relief.
While $40-$50 oil is not great for E&P economics, less volatility would enable the industry to lay plans that don't have to be adjusted every month or quarter.
It is hard to call the bottom with precision, and 4 days does not make a trend, but I am seeing some signs this week that are very encouraging. If we aren't exactly at the bottom, we are at least at a near-term plateau - oil is trying to hold its ground and flatten out here.
The chart above shows this week's trading sessions for WTI. You can see that we had significant rallies each day in the price of oil. This is a very good sign when you consider the nosedive of the prior sessions leading up to this week (see next slide).
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