Memorial Monday Sankey 5/31/21

By Paul Sankey Published on May 31, 2021 at 1:34 PM

OIL RISK HIGH. We have an OPEC meeting tomorrow, and the word is that Iran is pumping into storage on anticipation of successful negotiations with the Biden administration, which, for reasons I do not fully understand, is very keen to make a nuclear deal. This will allow Iran back into global oil markets. We understand that OPEC is warning Iran not to flood the market, and Iran is saying “we are going to flood the […]

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Morning Sankey 4/6/21

By Paul Sankey Published on April 6, 2021 at 9:02 AM

BP announced the early achievement of its 35% debt target after the strength of Q1, and we think several unhedged oil companies will surprise with the strength of their profits after a $60/bbl quarter. We believe the overall market has lost track of just how profitable major oils are when oil prices are above $60/bbl, by which we mean the entire S&P500 upstream oil sector, with the major warning on levels of hedging exposure (see […]

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Morning Mood Swing 3/30/21

By Paul Sankey Published on March 30, 2021 at 8:26 AM

Get ready for a dump of April Fool’s Day OPEC jokes as the Organisation meets formally this week, culminating on Thursday April 1st. Rollover is seen as the most likely outcome, which would be for April, Saudi extending its market control, with recent volatility in oil prices – ie downside moves – seen as the key concern. It’s a never-ending wonder trying to forecast oil markets, and now to be in new era. Here, we […]

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