26 Jan 2015
WTI and Brent differential rises back to over $3 – Malcolm Graham-Wood
FXStreet (Barcelona) - Independent Analyst, Malcolm Graham-Wood, comments on the performance of WTI and Brent after the release of inventory numbers, and further adds that cost cutting will attract major attention in the results of oil majors to be released this week.
Key Quotes
“The oil price had, by its own recent standards a fairly quiet week, Brent was only down $1.38 whilst WTI fared a little worse after those awful inventory numbers to finish down $3.54 over the period. This meant that having flirted with positive territory the differential has risen back to over $3, those inventories are at long time highs.”
“Cold weather in the States with ice and snow in the North East has had a modest effect on the natural gas price but stocks remain high and I would be surprised if the price went back up towards $4 but you never know.”
“The Baker Hughes Rig count showed another big fall last week, 43 more units were lost taking the number to 1,633 which is down 287 in the last two months and at the lowest level since 2010.”
“This week sees the start of the oil majors results season and whilst 4Q numbers will in most cases be dire, I suspect that it will be the statements and the cost-cutting that will attract most attention. Shell and ConocoPhillips are on Thursday with Chevron on Friday, in Shell’s case their comparable quarter is with that of the profits warning last year so will actually show an increase y/y.”
“For BvB, who was shocked into significant cost cutting then, it will be more of the same I suspect but maybe not as much as some other, we shall see.
Key Quotes
“The oil price had, by its own recent standards a fairly quiet week, Brent was only down $1.38 whilst WTI fared a little worse after those awful inventory numbers to finish down $3.54 over the period. This meant that having flirted with positive territory the differential has risen back to over $3, those inventories are at long time highs.”
“Cold weather in the States with ice and snow in the North East has had a modest effect on the natural gas price but stocks remain high and I would be surprised if the price went back up towards $4 but you never know.”
“The Baker Hughes Rig count showed another big fall last week, 43 more units were lost taking the number to 1,633 which is down 287 in the last two months and at the lowest level since 2010.”
“This week sees the start of the oil majors results season and whilst 4Q numbers will in most cases be dire, I suspect that it will be the statements and the cost-cutting that will attract most attention. Shell and ConocoPhillips are on Thursday with Chevron on Friday, in Shell’s case their comparable quarter is with that of the profits warning last year so will actually show an increase y/y.”
“For BvB, who was shocked into significant cost cutting then, it will be more of the same I suspect but maybe not as much as some other, we shall see.