Donald Trump’s Dream of Cheap Oil Might Still Come True - Bloomberg:
As winter keeps its grip on the northern hemisphere it is the oil bulls, not the bears, who have gone into hibernation. The price rally that greeted the new year has fizzled out as renewed concerns about demand growth outweigh the tightening of oil supply through OPEC cuts and U.S. sanctions.
Saudi Arabia had already started to deliver on its promised output reductions in December and went beyond what was pledged in January. U.S. production growth has stalled — for now — and President Donald Trump’s sanctions on oil flows from a second OPEC producer (Venezuela joins Iran on the naughty step) will cut supplies even further.
The flow of OPEC crude to the U.S. fell to the lowest in five years in January, according to data from the cargo-tracking and intelligence company Kpler. Bloomberg’s own tanker tracking shows the flow of crude from the Persian Gulf to the U.S. last month was 36 percent lower than in December and almost 60 percent lower than in August.
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