Oil Gains Amid Concern Mideast Tensions May Curb Supply at Bloomberg.
Seems everyone is calling for volatile oil prices. Do not be so sure. Protecting oil prices from going meaningfully lower are OPEC, the high cost of new supply and emerging market demand. Keeping a price spike away are new shale drilling, demand destruction and tepid economic growth. Perhaps markets actually work.
“”Lower economic growth is feeding through to slower oil demand all round,” said David Fyfe, head of the IEA’s markets division. “Global inventories have risen, and the oil market looks comfortably supplied.”” Financial Post
Iran Oil Embargo has Ripple Effect for Europe at WSJ.
“Technology is making it possible to tap vast new oil supplies. But that could be the proverbial drop in the gas tank compared to rising demand overseas.” Miami Herald
“The spending spree in Canada’s fast-growing oil sands is slowing as some of the country’s largest energy companies trim capital budgets and question the fate of some of their most important projects.” Globe and Mail
Obama administration: “re-interpreted a 50-year-old rule limiting the amount of time trucks delivering water and sand to drilling sites can stay on-site…was put into effect immediately…The new interpretation of the rule would remove a “waiting time exemption” for trucks at drilling-sites” AEI Ideas.
The rig count changed little: Haynesville Play.
Natural Gas Rig Count, Production and Productivity at RBN Energy. This is the best analysis I’ve seen on today’s natural gas supply. I’ll re-post this on today’s afternoon coal post because of the implications.
“we believe U.S. natural gas prices must average in the $2.50 to $3.00 range for the next 100 days.” Raymond James
Gulf of Mexico natural gas supply has shrunk to the point hurricanes do not mean much: Platts.
Opinion piece: The U.S. Has A Natural Gas Glut; Why Exporting It As LNG Is A Good Idea at Forbes.