What's Affecting Oil Prices This Week (July 9, 2018)?
In the week since our last edition of What’s Affecting Oil Prices, Brent prices were nearly flat, up only 37 cents to average $77.56/bbl. WTI prices saw more support, rising nearly $2 to average $73.71/bbl.
The week ahead will see both prices continue to climb on higher demand and myriad supply outages. We expect that Brent prices will likely average at least $78/bbl in the week ahead, while WTI could potentially reach $75. We reiterate that the strength in WTI is likely temporary, driven primarily by a production outage in Canada.
Geopolitics will be a positive factor in the week ahead as fighting in Libya and sanctions against Iran are supporting prices.
The dollar will be a neutral factor in the week ahead as fundamental and sentiment-related drivers continue to have more impact on crude oil prices.
Trader Sentiment: Neutral
Trader sentiment will be a neutral factor in the week ahead, with fundamentals providing more direction to crude prices.
Supply will likely be a marginally positive factor in the week ahead with Venezuelan, Iranian, Libyan and Syncrude volumes all constrained.
Demand will be a neutral factor in the week ahead as rising prices fail to stymie demand but also do not create opportunities for strong growth.
Refining will be a neutral factor in the week ahead with margins, especially in Asia, continuing to fall on higher crude prices and more regional product supply.
How We Did
Want To Learn More From Stratas Advisors?
Sign up for Stratas Advisors emails alerts to keep up to date with each segment of the energy sector value chain, analyzing impacts with respect to related industries.