Wednesday Dec 13, 2017
What to Watch
Shale Producers Should Not Bet on Rising Crude Prices, Says Executive
The benchmark U.S. oil price is up about 27% since June, but that doesn’t mean shale companies should bank on a continued rise, said David Hager, chief executive of Devon Energy Inc., in an interview with The Wall Street Journal’s Lynn Cook.
Oil prices nudged higher Wednesday, with Brent underpinned by a supply disruption in the North Sea, which is expected to trigger further reductions in global oil inventories.
Brent crude, the global oil benchmark, rose 0.9% to $63.90 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.7% at $57.54 a barrel.
Wall Street Journal Energy Report
Oil prices have risen but the price of XES has not. This is a negative divergence and a non confirmation.
At bottom the price of oil has risen from $44. But XES has been turned back at 16.75 on three occasions. Just this morning is down as is oil-some 35 cents. XLE energy producers has double topped and is trading down today.
All this looks toppy to me. I suspect we will see oil prices fall making a low in January.
Comments