Click image
for larger view
The
monthly average U.S.-dollar price of West Texas Intermediate (WTI) crude oil extended
its retreat for a seventh month, plunging by $11.63 to $47.97 per barrel; that
is the lowest price since March 2009. The price drop coincided with a strengthening
U.S. dollar, the lagged impacts of a 424,000 barrel-per-day (BPD) decrease in
the amount of oil supplied/demanded in November (to 19.0 million BPD), and a dramatic
accumulation of crude oil stocks (to the highest levels since 1982). The monthly
average price spread between Brent crude (the predominant grade used in Europe)
and WTI narrowed by $2.73 in January, to $0.31 per barrel.
Click image
for larger view
Click image
for larger view
Because
prices of near-term futures contracts stabilized in January while prices for
later contracts are retracing upward moves, we do not expect significant
additional fallout in spot oil prices.
Click image
for larger view
The foregoing comments represent the
general economic views and analysis of Delphi
Advisors, and are provided solely for the purpose of information, instruction
and discourse. They do not constitute a solicitation or recommendation
regarding any investment.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.