A Rare Week Of Optimism For Oil

[Elderberry]

Oilprice By Tom Kool - May 01, 2020

Oil markets are on course to see their first weekly gain in over a month as the OPEC+ production cut comes into effect and a wave of shut-ins hit the shale patch.

Friday, May 1st, 2020

Oil is set to post its first weekly gain in more than a month as production cuts and some relatively positive news regarding the coronavirus boosted sentiment. The OPEC+ deal begins today, while shut in wells have begun to pile up in meaningful volumes.

Fed opens spigot for shale. The U.S. Federal Reserve revised its Main Street Lending Program to allow larger and more indebted companies to qualify for lending. The announcement received criticism from multiple corners. “The major changes announced today mirror the top requests of the oil and gas industry,” a congressional watchdog said. “That raises questions about how the changes promote the broader public interest -- especially when these companies will still have no real obligation to retain or rehire their workers.” Even the powerful American Petroleum Institute spoke out. “You can’t have capitalism on the way up and socialism on the way down,” an API executive said. 

Shell cuts dividend, eyes peak demand. Royal Dutch Shell (NYSE: RDS.A) cut its dividend for the first time since 1945. Meanwhile, Shell’s CEO said that peak oil demand may come sooner, and Shell may transition to low-carbon energy faster. “We still believe that there is an energy transition underway which may even pick up speed in the recovery phase of this crisis and we want to be well positioned for it,” CEO Ben van Beurden said.

More: https://oilprice.com/Energy/Energy-General/A-Rare-Week-Of-Optimism-For-Oil.html

[IsailedawayfromFR]

Rare?  Most weeks are bullish for oil.  The past weeks are some of the the few exceptions in history.

Oil sold for ten cents a barrel when the great East Texas Oil Field was discovered.

It roared back afterwards and created an industry unparalleled by few in this country.

[Smokin Joe]

Rare?  Most weeks are bullish for oil.  The past weeks are some of the the few exceptions in history.

Oil sold for ten cents a barrel when the great East Texas Oil Field was discovered.

It roared back afterwards and created an industry unparalleled by few in this country.

Yeah, but one of those bright, shiny new dimes from 1930 (MS65) is worth between $120 and $200 now, depending on which mint it came from.

The cure for low prices is low prices. It has always been that way in the oil industry.

Tap off the surplus supply by filling the SPR, cheap, and let's all go back to work.

[IsailedawayfromFR]

Yeah, but one of those bright, shiny new dimes from 1930 (MS65) is worth between $120 and $200 now, depending on which mint it came from.

The cure for low prices is low prices. It has always been that way in the oil industry.

Tap off the surplus supply by filling the SPR, cheap, and let's all go back to work.

[roamer_1]

And I think it will come back at a romp if someone will knock the dang chocks from under the economy... But it will take a quarter to fire demand and use up the surplus.