More sugar coming onto the market will lower prices.
Nigeria?s escalating problems though are boosting prices too. Nigeria puts almost 2.5 million barrels of crude into the market daily -- around 3 percent of global oil output.
Nigeria's escalating problems ... are boosting prices. Nigeria puts almost 2.5 million barrels of crude into the market daily -- around three percent of global oil output.
I think the oil market is in for a period of consolidation for a few days.
Ordinarily comfortable inventories would mean lower prices -- probably closer to fifty-five dollars. But the Iran situation, and several smaller actual interruptions to crude supply, are keeping prices higher.
There are quite a few ways in which supplies could be disrupted, not just from Iran itself, while the accumulation of economic data and forecasts for the global economy over the past month or so points to global energy demand remaining strong. The rise has been speedy.
There's unlikely to be a quick return of output, and the market is certainly pricing in all of these various geo-political threats.
There's still money flying into the commodities markets in general. I think the market is still bullish.
I understand that some of the demand from fabricators has fallen away as the price has risen.
The small retreat is probably due to the dollar coming back a bit.
Something that could have squeezed supply a bit tighter would be a sustained cold snap and there just hasn't been the cold weather in the U.S. yet to test out just how well the market can supply.
There's a sense that Iran has heated up and if it's going to come to a head, it will be further out than May.
The next important meeting for the oil market will not be OPEC but the International Atomic Energy Agency.
The basic thing underlying the industry is that global demand remains very strong.
The U.S. inventory data clearly worried the market, but the Iranian and Nigerian situations are providing support to prices.
The fall in prices is modest...No one is willing to assume Iran will never use oil as a bargaining chip.
The continuation of cool weather in the United States is expected to bring big spikes in heating fuel demand.
I'm inclined to think it's not reached a peak yet. We're still faced with a tight supply-demand equation against the backdrop of strong economic growth, and there's still more money to come into the market.
I'm inclined to think it's not reached a peak yet.
Inventories are at pretty comfortable levels based on a milder weather outlook, so the chances of a squeeze on supply this (northern) winter are receding.
Iran and Nigeria are providing a double disruption to the crude oil market, emphasizing that the oil market remains in no condition to play a man or more short.
But if Iran withdrew, that would leave a substantial gap in the market. In any case, the oil price is likely to remain high because global demand is so strong.
The market had become a bit too comfortable, expecting a diplomatic solution in Iran.
The Iran-U.N. row and potential for economic sanctions reminds us that geopolitical situations remain a key factor in giving support to oil prices.
The Iran issue is the driver of the day, the extra factor causing the run-up in prices, but the basic thing underlying the industry is that global demand remains very strong.
The Iranian issue is hanging over the market. There's a big bogey there in the form of Iran and these smaller issues that are making real impinges on supply.
The fundamentals, coupled with a lot of institutional investment funds coming into the market, are keeping prices up.
The market has had a decent run-up in the past few sessions so we may see a bit of consolidation, but I don't expect it to be a sustained dip in prices.
