What's Affecting Oil Prices This Week (Jan. 29, 2018)?

In the week since our last edition of What’s Affecting Oil Prices, Brent prices pushed higher to average above $70/bbl on a weekly basis.

For the upcoming week, Stratas Advisors expect Brent prices to pull back and average $69/bbl. This week the analysts expect the West Texas Intermdiate-Brent differential to average $4/bbl, after a substantial fall last week.

Geopolitical: Negative

Geopolitics will be a negative factor in the week ahead. Outside of the perennial issues around Venezuela the geopolitical landscape remains quiet, which Stratas Advisors believe will put some pressure on prices.

Dollar: Positive

The dollar continues to fall, with the relationship between crude and the dollar beginning to strengthen. Thus, Stratas analysts see this as a positive factor for crude prices.

Trader Sentiment: Positive

Record long positions are reflecting positive trader sentiment, despite the risk of a correction in such overbought territory.

Supply: Negative

A bump of 12 rigs last week pushed the U.S. to record production levels, making this a negative factor this week.

Demand: Neutral

Demand in the U.S. remains volatile due to weather concerns. This is not likely to move the market substantially and remains a neutral factor.

Refining: Positive

Refining margins around the world strengthened last week, making this variable a positive factor.


Jeff Quigley

Jeff Quigley is Director of Energy Markets at Stratas Advisors, a global consulting and analytics provider for all facets of the oil and gas markets and related industries. With over 12 years’ experience in the energy industry, Jeff is a seasoned expert in market monitoring and forecasting across the entire value chain.

 See full bio

Want To Learn More From Stratas Advisors?

Sign up for Stratas Advisors emails alerts to keep up to date with each segment of the energy sector value chain, analyzing impacts with respect to related industries.

Sign up here