" pressured by stronger-than-expected supply figures" was the first comment.
Again, presuming you've read all the uplifts to forecasts (11Mmbopd end 2018) made by EIA etc. The concern is that increase is primarily coming from shale and the plans from COP, EOG, PXD .... (the big efficient producers) are all 20+% increases. All seem to agree that costs are increasing (one man's expense is anothers revenue). Ceritus paribus - margin will shrink.
""It's never just one factor that slams the market like this. It's several factors". One factor I mentioned right at the beginning was rising (US) interest rates leads to strengthening USD (again ceritus paribus) which acts as a drag on the price of oil (the inverse correlation).
IMO "Goldies" don't care what the price of oil is as long as it moves (preferably with lots of volatility) and more so if they can take the opposite position (cheaply) of what they say publicly that creates a perceived "safe" long position (like revising target price up to $82).
All just points of view.
Again I expect you would have read this type article (of which there are many). My bolding.
"NEW YORK (Reuters) - Oil prices fell on Friday as the dollar surged following strong U.S. jobs numbers, though compliance with output cuts by OPEC and rising global demand kept much of the early-year oil rally in place. "
I'm not saying the only reason oil price fell was because of the USD surging but that it did and it was also 1 of a number of factors (which I've be saying all along).
"An increasingly correlated trade between oil, stocks, bonds and the dollar has amplified swings in the markets."
Journo's have to write stories, Analysts have to publish research, Goldman has to make money and posters on HC have to amuse themselves with their interpretations.
No one is right or wrong in isolation IMO
SEA Price at posting:
7.8¢ Sentiment: None Disclosure: Not Held
