Jump to content
House Price Crash Forum
Sign in to follow this  
FTBagain

Anyone Noticed The Oil Price Lately?

Recommended Posts

Both Brent Crude and West Texas are above $60 a barrel. Six months ago that caused hollows in the press. It has been rising now for about 3 - 4 weeks, quite steep too. Given that there does not appear to be any disaster causing this one can only assume that it is a supply / demand issue!

http://newsvote.bbc.co.uk/1/shared/fds/hi/...welve_month.stm

December Inflation data should be interesting.

Edit: Added Link

Edited by FTBagain

Share this post


Link to post
Share on other sites

Prices always fall at the end of the year because companies run down stocks to have the minimum for end of year tax assessments. Now that physical cargoes being traded will be delivered in 2006, the bull market is resuming.

Share this post


Link to post
Share on other sites

Prices always fall at the end of the year because companies run down stocks to have the minimum for end of year tax assessments. Now that physical cargoes being traded will be delivered in 2006, the bull market is resuming.

Thank for that. It explains why prices drop just as winter gets going in Europe and N. America.

As for the bull run, it looks just as strong as in the run up to the hurricane season.

How long does this phase of the cycle usually last, into the spring? If so we could be breaking records again by the end of this winter.

Share this post


Link to post
Share on other sites

Look the price of oil for the last two years and the 200 day average, the 200 day average has been steadily climbing with the day price going through periods of rapid increase then falling back to the 200 average line before starting another rapid rise. We aren't dropping below the steadily rising 200 day average price.

The price is still too low at the moment since the global market is currently being subsidised by continued draw down from IEA reserves and US SPR. That can't go on forever and the GoM is still operating at not much more than half capacity. When we return to a steady state, ie no net draw down on reserves the price will be higher than today.

Share this post


Link to post
Share on other sites

North Sea crude market has begun to look tight again today, starting to move into backwardation (prompt prices higher than forward prices - signals shortage of supplies). The bull market definitely stll has plenty of legs.

Share this post


Link to post
Share on other sites

El_Pirata,

Thanks a lot. That sounds like good news indeed. Where do you find this stuff out? Are you in the oil industry?

Rising oil = rising inflation = rising IR = HPC :)

Thanks you got my day off to s good start.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 333 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.