I'm picking with today's Ophir drilling report that the production wells must be close to complete - and in today's Bloomberg feed the following.....
GOLDMAN SACHS SEES GREEN SHOOTS FOR OIL
Oil is doing its hardest to regain the $50 a barrel level that it last reached in late May. After falling to about $42.50 in June, it has since rebounded to about $49 as suppliers step up their rhetoric about clearing an overhang of supply. Count Goldman Sachs as one of the believers. In a research note titled "Green Shoots in the Oil Market," the firm says recent data showing inventories may be on the decline, which coupled with the rebound in prices "raise the question of whether the oil market is at an inflection point and set to break to new year-to-date highs." The Energy Information Administration reports that U.S. crude inventories declined by 7.21 million barrels last week to the lowest level since early January, according to Bloomberg News' Jessica Summers. Kuwait joined the U.A.E. in promising to pump less oil after Saudi Arabia called on OPEC producers to cut more supply. “This market really has a lot going for it at the moment," said John Kilduff, a partner at hedge fund Again Capital in New York. "There is an impression that we’re coming into balance finally and it’s driven by this pretty steep decline in U.S. crude oil inventories."
OXX Price at posting:
9.0¢ Sentiment: Hold Disclosure: Held
