What’s going on? Less than 4 months ago in early October, WTI was $77/B and some international banks and trading houses said it was going to $100/B! Just over 2 1/2 months later, on the day before Christmas, WTI had fallen to $42/B. The Wall Street Journal kept saying it was all because of a glut in supply, which suggested strongly to the reader that WTI would go even lower.
For producers in the Permian, the joy of the holidays was tainted with uncertainty, anxiety, and confusion. Oil prices do have a long history of volatility, with wide, event driven swings during the course of a year. But at the end of the day, WTI reflects the fundamentals of supply and demand and how they are changing.
For readers who need or want an informed, independent perspective on the major underlying forces driving changes in oil prices a subscription to Boston Energy Research’ monthly road map of future oil prices could be very helpful and make a big difference.
See for yourself: The headline of its December road map read “WTI Oil $67/B in 2019” with the following synopsis: “With the OPEC cut announced last week, the oil market will remain in balance through 1Q19. The recent correction was overdone. The market dynamic changes in 2Q19 and upside price volatility could be explosive.”
WTI was $53/B on December 14th, the day the report was published, about where the price of WTI is now. Boston Energy Research anticipated a $59/B price for the first quarter of 2019 based on its December analysis of underlying fundamental trends.
Click here for the full report.
The road map is published monthly promptly after an analysis of the latest data published by the IEA, OPEC, and other sources.
To subscribe to the Road Map, which publishes every month but appears in full in this magazine only once every three months, email jesse@zacpubs.com and ask for pricing information. Please use the subject line “Oil Price Road Map.”