{"id":5506,"date":"2015-02-10T06:43:17","date_gmt":"2015-02-10T11:43:17","guid":{"rendered":"http:\/\/olduvai.ca\/?p=5506"},"modified":"2015-02-10T06:43:17","modified_gmt":"2015-02-10T11:43:17","slug":"wall-street-has-a-dream-about-the-price-of-oil","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=5506","title":{"rendered":"Wall Street Has a Dream About the Price of Oil"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/02\/09\/oil-price-bounce-a-head-fake-could-drop-to-20-citi\/\" target=\"_blank\">Wall Street Has a Dream About the Price of Oil<\/a><\/h3>\n<p>The price of oil has bounced 20% since January 29 when the benchmark West Texas Intermediate had dipped below $44 a barrel, but according to Edward Morse, Citigroup\u2019s global head of commodity research, that dizzying bounce is a \u201chead-fake.\u201d<\/p>\n<p>Because the fundamentals are\u00a0<em>still<\/em>\u00a0terrible. Oil production in the US is\u00a0<em>still<\/em>\u00a0rising, despite drillers shutting down drilling activities at a record pace. Drilling fewer new wells is hurting oil field services companies, and the pain is fanning out across the oil patch and beyond. It hit private equity firms, it sank energy junk bonds, it triggered layoffs, but it isn\u2019t curtailing oil production. Not yet.<\/p>\n<p>So the US remains by far the largest contributor to \u201cglobal oil supply growth,\u201d the US Energy Information Administration\u00a0<a href=\"http:\/\/www.eia.gov\/todayinenergy\/detail.cfm?id=19911\">just pointed out<\/a>, with production in 2014 jumping by 1.59 million barrels a day. By comparison: in Iraq, the\u00a0<em>second largest<\/em>\u00a0contributor to global oil supply growth, production edged up by 0.33 million barrels a day.<\/p>\n<p>And\u2026<\/p>\n<p>\u201cBrazil and Russia are pumping oil at record levels, and Saudi Arabia, Iraq and Iran have been fighting to maintain their market share by cutting prices to Asia,\u201d explained the Citi report, cited by\u00a0<a href=\"http:\/\/www.bloomberg.com\/news\/articles\/2015-02-09\/citi-oil-could-plunge-to-20-and-this-might-be-the-end-of-opec-\">Bloomberg<\/a>. \u201cThe market is oversupplied, and storage tanks are topping out.\u201d<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Wall Street Has a Dream About the Price of Oil The price of oil has bounced 20% since January 29 when the benchmark West Texas Intermediate had dipped below $44 a barrel, but according to Edward Morse, Citigroup\u2019s global head of commodity research, that dizzying bounce is a \u201chead-fake.\u201d Because the fundamentals are\u00a0still\u00a0terrible. Oil production [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[267,588,592,1775,595,723,860],"class_list":["post-5506","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-energy-information-administration","tag-oil","tag-oil-price","tag-oil-price-collapse","tag-oil-production","tag-shale-oil","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5506","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5506"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5506\/revisions"}],"predecessor-version":[{"id":5507,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5506\/revisions\/5507"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}