Feb 10th No dividend for short...
Atleast NOBODY say below $35 now
Morgan Stanley also said that an emerging willingness of producers to forward hedge at prices not much above $40 per barrel was also capping prices.
National Australia Bank (NAB) said on Thursday that it expected "oil prices to recover mildly to $40 per barrel by end-2016 and $50 per barrel by end-17."
Baku, Azerbaijan, Feb. 4
By Dalga Khatinoglu – Trend:
Six members of the OPEC have agreed to hold an urgent meeting, Shana news agency reported Feb. 4.
After a meeting with his Iranian counterpart Bijan Namdar Zanganeh, Venezuela's oil minister Eulogio del Pino said that Russia also support an urgent meeting between OPEC members to cut production level to push the prices up.
Venezuela's oil minister has started a round of trips to major oil producers to convince them to decrease production level in order to raise the prices.
He met with his Russian counterpart Alexander Novak on Monday and after Iran, Eulogio del Pino will visit Saudi Arabia and Qatar.
According to the International Energy Agency (IEA), the global oil production reached 96.31 mbpd, while demand was 94.47 mbpd in 2015.
Huge amount of oil glut has pushed the prices down, from $108 in the first half of 2014 to the current $35.
Eulogio del Pino said that Iran, Oman and Iraq are among OPEC members who have willingness to hold OPEC's urgent meeting.
He also called on the other non-OPEC producers on cutting the oil output and supporting prices.
Senior Gulf sources make clear that the idea of a 5% cut is not a proposal authored by Saudi Arabia, but that the Kingdom would not stand in the way of a deal.
So where does this leave the oil market? Investment banking giant Goldman Sachs, which has been one of the most bearish firms when it comes market oversupply, said it's too late for the major players to save oil anyway.
Away from the EIA figures, the dollar slumped yesterday after weak data on the US services sector pushed back expectations of when the Federal Reserve will again raise interest rates. A weaker dollar makes oil cheaper for overseas consumers in big markets such as China, which is seen as positive for demand.
Finally – and arguably most importantly – the market continues to trade oil up on hopes of a deal among oil-producing nations to cut exports from their multi-year highs. Last night, there were reports that several members of Opec and Russia, the key non-Opec oil power, are set to meet to discuss coordinated action.
(Bloomberg) -- Oil bulls distressed that last week’s rally fizzled can find some comfort in forecasts for a bigger and longer rebound by the end of the year.
Analysts are projecting prices will climb more than $15 by the end of 2016. New York crude will reach $46 a barrel during the fourth quarter, while Brent in London will trade at $48 in the same period, the median of 17 estimates compiled by Bloomberg this year show. A global surplus that fueled oil’s decline to a 12-year low will shift to deficit as U.S. shale output falls, according to Goldman Sachs Group Inc.
U.S. production will drop by 620,000 barrels a day, or about 7 percent, from the first quarter to the fourth, according to the Energy Information Administration. Meanwhile, the International Energy Agency forecasts total non-OPEC supply will fall by 600,000 barrels a day this year. That may pave the way for a rebound as lower prices have stimulated global demand. Oil is the “trade of the year,” according Citigroup Inc., which is among banks from UBS Group AG to Societe Generale SA that predict a gain in the second half.
“U.S. shale should take the hit, that’s where you will see cuts and supply should start to taper off,” Daniel Ang, an investment analyst at Phillip Futures, said by phone from Singapore. “On top of that, there are bullish demand forecasts for the second half.”
West Texas Intermediate and Brent both closed at the lowest level since 2003 on Jan. 20. New York futures for March delivery closed at $29.88 a barrel on Tuesday and would need to gain 54 percent to reach the median estimate of $46 a barrel. The London contract for April delivery closed at $32.72 and needs a 47 percent boost to hit $48. The median price outlook was taken from estimates provided this year by 17 analysts who gave forecasts for both oil grades.
The oil price rout will shut sufficient production to erode the global glut and crude will turn into a new bull market before the year is out, analysts in