Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
In the week since our last edition of What’s Affecting Oil Prices, Brent pulled back from the brink of $70 to average $68.61/bbl.
For the upcoming week, Stratas Advisors expect Brent prices to average $68.50/bbl as trading activity picks up and the market remains quiet at the start of the week. This week Stratas analysts expect the West Texas Intermediate-Brent differential to average $5.50/bbl.
Geopolitical: Neutral
Geopolitics will be a neutral factor in the week ahead. The restart of production from Libya will offset comments from Saudi Arabia’s energy minister Khalid al-Falih indicated on Jan. 21 that OPEC members are likely to cooperate in some form past 2018. This is not likely to come as a surprise.
Dollar: Neutral
The dollar will be a neutral factor next week as crude oil remains more influenced by fundamental factors and sentiment.
Trader Sentiment: Positive
Trader sentiment will be a positive factor in the week ahead with net positioning near record highs. RSI hovers near overbought territory as it has since end-December, raising the possibility of a price correction, likely triggered by a negative weekly U.S. inventory report.
Supply: Neutral
New supply from Libya is offset by a fall of five oil-directed rigs in the U.S. Though this fall is likely weather-related, Stratas Advisors see supply as neutral this week.
Demand: neutral
Demand was a mixed bag last week as wild weather continues to move through much of the country. While there could be a surprise this week from the EIA, we consider it a neutral factor.
Refining: Neutral
Refining margins continue to fall but rebounded this week. While we are concerned about the longer term impacts of refinery margins compression, this is offset by some short-term increase.
Recommended Reading
SM Energy Declares Quarterly Cash Dividend
2024-03-26 - SM Energy’s dividend will be paid out on May 3 to stockholders on record as of April 19.
Matador Stock Offering to Pay for New Permian A&D—Analyst
2024-03-26 - Matador Resources is offering more than 5 million shares of stock for proceeds of $347 million to pay for newly disclosed transactions in Texas and New Mexico.
Par Pacific Asset-based Revolving Credit Bumped Up by 55%
2024-03-25 - The amendment increases Par Pacific Holdings’ existing asset-based revolving credit facility to $1.4 billion from $900 million.
California Resources Corp. Nominates Christian Kendall to Board of Directors
2024-03-21 - California Resources Corp. has nominated Christian Kendall, former president and CEO of Denbury, to serve on its board.
Crescent Point Energy to Rebrand as Veren Inc.
2024-03-21 - The company will seek shareholder approval for the change at its upcoming annual and special meeting of shareholders on May 10.