Insight and inspiration in turbulent times.
Oil futures have fallen about $3 a barrel from two weeks ago when London prices were close to $70. New York futures closed out last week circa $62 and London $67. Prices held steady until Thursday when President Trump announced another round of the tariff war with China sending prices down $1.50 a barrel on Friday.
After an up-and-then-down week, oil and gas markets closed slightly higher Thursday ahead of the Easter holiday weekend. All major U.S. and European stock exchanges and markets were closed Friday for Good Friday, which coincides with the Passover holiday that starts Friday at sundown.
The most significant news driving the oil markets last week came from Washington, where major policy and personnel shifts drove the markets down and up last week. Crude posted its biggest weekly gain since July on Friday as President Trump changed his national security team, fueling speculation sanctions on Iran will be re-imposed.
Oil prices closed on Friday at $66.21 in London and $66.34 in New York. Prices are about in the middle of the trading range where they have been since mid-February.
It was a volatile week with oil prices climbing slowly on Monday and Tuesday, falling by over $2 a barrel on Wednesday and Thursday, and then rebounding to close down about 50 cents for the week on Friday.
Oil prices fell sharply last week ending up at $61.25 in New York and $64.37 in London. A higher than expected increase in crude stocks and gasoline was the impetus for the decline.
After a $7 a barrel fall between late January and mid-February, oil prices have rebounded by about $4.50 a barrel and are now in the $63-67 range. Both major oil price benchmarks, WTI and Brent, saw the second straight week of gains.
It was a volatile week with stock markets crashing and oil prices falling by nearly $7 a barrel from recent highs. Behind the price collapse was a stronger dollar, the break in the equity markets, ever increasing US shale oil production, and an unexpectedly large jump in the rig count the week before last.
After the best January in 12 years, the oil markets declined slightly last week as a stronger dollar and crashing equity markets offset surging US shale oil production, and steadily increasing US rig counts.
The fact that few Americans–including the likes of Bacevich or nearly any other liberal commentator who bemoans the end of the American dream, the death of the liberal class (or its triumph), or the gutting of the middle class—notice or make mention of our privilege is symptomatic of what we don’t want to see, and provides a good and needed starting place for me.
Last week oil prices recorded the biggest weekly loss since October as the IEA, EIA, and OPEC all forecasted large increases in US shale oil production during the next two years.
New York oil futures closed up 4.7 percent last week despite a ten-rig increase in the number of active US oil rigs. London and New York futures closed with biggest weekly gains since October.
