Click image
for larger view
The
monthly average U.S.-dollar price of West Texas Intermediate (WTI) crude oil took
a breather from its seven-month plunge when edging up $3.36 to $50.58 per
barrel in February. The price drop coincided with a strengthening U.S. dollar,
the lagged impacts of a 311,000 barrel-per-day (BPD) increase in the amount of
oil supplied/demanded in December (to 19.5 million BPD), and a seemingly
unstoppable 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 widened by $6.98 in February, to $7.52 per barrel.
Click image
for larger view
Click image
for larger view
With
futures prices in “contango” (i.e., near-term contracts are priced lower than
later-term contracts), 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.