Homepage / Investment / OPEC has lost control but prices could have hit bottom: CNBC Oil Survey
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election

Investment

OPEC has lost control but prices could have hit bottom: CNBC Oil Survey

Written by finanster
on July 3, 2017
Leave a comment

OPEC has lost its grip on the oil market, but oil prices will likely set a bottom in the low $40s per barrel, according to the latest CNBC Oil Survey.

Sixty percent of participants agree that OPEC has lost control of the oil market, and the same percent also expect the cartel to continue its efforts to “jawbone” or talk up prices.

Just over half—or 53 percent of the participants in CNBC’s latest survey—say the bottom for oil prices is likely to be in the low $40s per barrel. However, 70 percent would not rule out a further drop into the $30s. Forty-six percent see it holding in the high $30s if it does go below $40 per barrel.

Forty-seven percent of the 15 oil market experts say there is more downside risk, but 40 percent say there should not be. Oil prices are expected to end the year between $40 and $49 per barrel, according to 47 percent, while 33 percent see prices in the $50 to $59 per barrel range.

Oil prices rose for an eighth day Monday, in the longest winning streak in more than five years. West Texas Intermediate crude futures were trading at a three-week high, just below $47 per barrel.

WTI hit a recent low of $42.05 per barrel on June 21, a level it had traded near in November. The low in August, 2016 was $39.19 per barrel. U.S. government data on drilling activity for new oil production in the United States fell for the first time since January, dropping by two rigs, while monthly government data showed crude output fell in April for the first time this year.

U.S. Energy Information Administration figures, released Friday, showed that U.S. output fell by 24,000 barrels per day on a monthly basis, a bullish signal for the market.

Oversupply was cited by 93 percent as the biggest factor influencing prices right now, and 80 percent expect it to be the biggest factor for the remainder of the year. Just 7 percent see demand as the biggest issue. Seven percent see geopolitical threats as a bigger factor affecting prices, and six percent expect OPEC will be the greatest influence in the second half of the year.

Forty seven percent believe demand is stronger but 40 percent believe it is flat. Thirteen percent say demand is trending weaker.

Commodities analyst Dennis Gartman, publisher of the Gartman Letters, says that the world must understand that the hydraulic fracturing and horizontal drilling technologies used by U.S. drillers have not even begun to be used in other parts of the world.

“…it WILL, the effects of which are obviously long term very, very bearish,” he wrote in comments supplied with survey results. Gartman said U.S. technology will expand to Russia, Mexico, China the Middle East and Africa.

“The Deputy Crown Prince of Saudi Arabia knows these things as well as anyone and it is his intention to sell his country’s oil reserves as quickly as he is able to secure what “wealth” he can before crude oil at some point in the next two or three generations falls to near zero and is used only as a source of product production and not as a fuel for internal engines. He “gets” it; few others around him do,” Garman wrote.

Mohammed bin Salman, now Crown Prince, has been promoting a program to diversify Saudi Arabia away from its dependence on crude. As part of the plan, the kingdom hopes to take its state-owned oil giant, Saudi Aramco, public. Analysts say that is one reason Saudi Arabia is willing to keep to an agreement to cut production, hoping it will help stabilize the market and boost prices.

The increase in production by U.S. shale drillers, or frackers, has been a key issue for the market, with U.S. production at about 9.3 million barrels per day. According to the CNBC survey, 60 percent say President Donald Trump’s pro-energy policies have had no effect on prices, but 33 percent say they have hurt prices a little and seven percent see a large negative impact.

“If frackers continue to push to 10 million barrels per day—oil will be in the low $30s by the winter,” wrote Anthonzy Grisanti of GRZ Energy.

Source: Investment Cnbc
OPEC has lost control but prices could have hit bottom: CNBC Oil Survey

Comments are closed.