According to Tom Kloza, head of energy analysis at OPIS, the U.S. is increasing oil exports with unprecedented speed, and is unlikely to slow down. He expects exports to rise above 2 million barrels per day, a record for U.S. exports, and remain high in 2018, pressuring Brent prices to fall lower as the U.S. becomes more of a global player. Crude exports had been banned for 40-years until the law was lifted under the Obama administration two years ago. Click Here to read more from CNBC.
According to Paal Kibsgaard, CEO of Schlumberger, the largest publicly traded oilfield services company, oil prices are beginning to firm up and will likely rise in 2018. Numerous factors, including OPEC production cuts and lower investments in U.S. exploration, will converge to elp move prices higher. Unfortunately for Schlumberger, the U.S. is one of the only areas in the country still growing its output, and their international customers have cut back demand for oilfield services. Click Here to read more from Schlumberger.
According to Julian Lee of Bloomberg, the oil rally is nearly out of steam, and will need support from OPEC if it is to continue. OPEC members have been commenting on the prospect of extending production cuts beyond March 2018, when they’re currently set to expire. So far, some members have taken a “wait and see” approach, not committing to action until we get through the winter and see how inventories have fared. That approach could create more uncertainty than help. Click Here for an in-depth analysis from Bloomberg.