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Oct 14, 2015

Analysis – A $70 oil floor? Fat chance, but OPEC price plan may be first step

HOUSTON/NEW YORK (Reuters) – The safe money for oil traders is betting that Venezuela’s plan to resurrect OPEC’s old price band mechanism, attempting to set a $70 floor for the battered market, will be doomed from the start.

Saudi Arabia, the group’s de facto leader, has shown zero interest in returning to a strategy of supporting prices; big producers outside the Organization of Petroleum Exporting Countries, namely Russia, have essentially ruled out cuts. And most analysts say attempting to set a price range is futile, or that the $70 price is unsustainably high, or both.

Oct 14, 2015

A $70 oil floor? Fat chance, but OPEC price plan may be first step

HOUSTON/NEW YORK (Reuters) – The safe money for oil traders is betting that Venezuela’s plan to resurrect OPEC’s old price band mechanism, attempting to set a $70 floor for the battered market, will be doomed from the start.

Saudi Arabia, the group’s de facto leader, has shown zero interest in returning to a strategy of supporting prices; big producers outside the Organization of Petroleum Exporting Countries, namely Russia, have essentially ruled out cuts. And most analysts say attempting to set a price range is futile, or that the $70 price is unsustainably high, or both.

Oct 1, 2015

Commodity company distress may be turning point for markets

NEW YORK (Reuters) – Commodity traders have a message for big raw material producers: modest cutbacks in production are not enough; they want to see blood.

And they may get their wish because of pressure from the capital markets.

After a rout that has more than halved the price of many major commodities over the past year, the financial pressure on some producers is becoming too much to bear, particularly those laden with tens of billions of dollars in debt accumulated during boom times.

Aug 31, 2015

New U.S. oil data shows lower 2015 production: EIA

NEW YORK (Reuters) – The U.S. oil industry pumped less crude than initially estimated this year, according to new government data that offered the clearest look yet at the impact of drillers’ retrenchment in response to collapsing prices.

The downward supply revisions were “unambiguously” bullish for a global market awash with oil, said Credit Suisse global energy economist Jan Stuart, suggesting the oft-cited resilience of U.S. shale producers to lower crude prices might have been overstated. Oil prices surged by as much as $3 a barrel on Monday, with some traders citing the new data.

Aug 27, 2015

Oil soars over 10 percent, biggest gain in six years as shorts scramble

NEW YORK (Reuters) – Oil rocketed more than 10 percent higher on Thursday, posting its biggest one-day rally in over six years as recovering equity markets and news of diminished crude supplies set off a short-covering scramble by bearish traders.

Snapping back from a deep two-month slump that knocked U.S. crude to 6-1/2 year lows below $40 this week, oil climbed as world stock markets rose on hopes Chinese government measures to stimulate the economy would pay off, while the dollar strengthened as risk aversion eased.

Aug 27, 2015

Oil soars over 10 percent as deep shorts scramble for cover

NEW YORK (Reuters) – Oil rocketed as much as 10 percent higher on Thursday, posting its biggest one-day rally since 2009 as recovering equity markets and news of diminished crude supplies set off a short-covering surge by bearish traders.

Snapping back from a deep two-month slump that reached 6-1/2 year lows this week, oil climbed as world stock markets rose on hopes Chinese government measures to stimulate the economy would pay off, while the dollar strengthened as risk aversion eased.

Aug 5, 2015

Analysis – Oil bulls’ hope for quick price dip dimmed by 2020 crude under $70

HOUSTON (Reuters) – As oil prices entered a second steep slide a few weeks ago, bullish traders and analysts had hoped for a repeat of the sharp but short dip that occurred early in the year – a speculative slide below $50 (32.16 pounds) a barrel followed by a quick recovery.

Some are now reconsidering that view, as long-term oil prices take the lead in the market’s latest dive, swaying sentiment toward a lengthier slump that would mean prolonged pain for big producers, from Exxon Mobil Corp (XOM.N: Quote, Profile, Research) to Saudi Arabia.

Aug 5, 2015

Oil bulls’ hope for quick price dip dimmed by 2020 crude under $70

HOUSTON (Reuters) – As oil prices entered a second steep slide a few weeks ago, bullish traders and analysts had hoped for a repeat of the sharp but short dip that occurred early in the year – a speculative slide below $50 a barrel followed by a quick recovery.

Some are now reconsidering that view, as long-term oil prices take the lead in the market’s latest dive, swaying sentiment toward a lengthier slump that would mean prolonged pain for big producers, from Exxon Mobil Corp (XOM.N: Quote, Profile, Research, Stock Buzz) to Saudi Arabia.

Jul 8, 2015

Analysis – Oil under $60 beyond 2016 suggests market rethinking shale

NEW YORK (Reuters) – The almost 10 percent nosedive in headline oil prices this week has many hallmarks of a shocking but short-lived slump, triggered by a confluence of external events and exacerbated by safety-seeking investors and momentum-chasing traders.

By Tuesday afternoon, the crowded race to the exit was winding down, with prices recovering from three-month lows as traders reassessed the factors they blamed for the worst slide in four months: Greece’s debt woes; China’s stock market meltdown; talks with Iran over its nuclear program; a stronger dollar; a rise in the number of U.S. oil rigs; a breach of key technical triggers.

Jul 8, 2015

Oil under $60 beyond 2016 suggests market rethinking shale

NEW YORK (Reuters) – The almost 10 percent nosedive in headline oil prices this week has many hallmarks of a shocking but short-lived slump, triggered by a confluence of external events and exacerbated by safety-seeking investors and momentum-chasing traders.

By Tuesday afternoon, the crowded race to the exit was winding down, with prices recovering from three-month lows as traders reassessed the factors they blamed for the worst slide in four months: Greece’s debt woes; China’s stock market meltdown; talks with Iran over its nuclear program; a stronger dollar; a rise in the number of U.S. oil rigs; a breach of key technical triggers.