Does AU have any confidence in SEA?, page-6

You don't expect him/her to blame himself do you?

Since SEA has a "strategic relationship" with Vitol ...

"The surge in hedging has come as prices have rallied, bringing the key WTI 2018 calendar swap, representing expected prices for 2018, to as much as $52.71 a barrel this week, one of the strongest levels since April.

That incentivizes producers to keep drilling even if oil prices retreat from the recent rally. Ian Taylor, chief executive of Vitol, the world's largest oil trader, said at the conference that he sees Brent crude falling to $45 a barrel in the next year as U.S. output surges.

Small and medium-sized U.S. shale producers have hedged about 32 percent of next year’s oil production at about $52 a barrel, researchers at investment bank Tudor, Pickering, Holt & Co estimate.

"There is definitely going to be a pretty large surge in production next year," said Jamaal Dardar, TPH’s E&P research associate. The EIA currently expects 2018 U.S. production of 9.9 million bpd, while TPH thinks that figure will come in at 10.2 million bpd."


And if we don't know by now, increase in supply leads to decrease in price. Lot's of posters throw mud at analysts when they come out with low price forecast .... are you going to throw mud at the CEO of your strategic oil marketing partner?