On a weekly average basis, Brent and WTI both increased last week, although Brent saw slightly more support. Brent increased $3.89/bbl to average $65.17/bbl last week. WTI increased $3.13/bbl last week to average $59.31/bbl. For the week ahead, Stratas Advisors expect Brent to average $64.50/bbl as a geopolitical price premium remains in place.
Flooding in East Texas impeded some refinery activity and slowed shipments through the Houston Ship Channel. Direct damage from the flooding appears minimal and operations are swiftly returning to normal but minor crude or product builds could be reported in future weekly data.
In the week ahead Saudi Arabia’s government is expected to press the United Nations to form a coalition to take action against Iran. However, potential allies remain reticent to commit to an armed intervention. Although there is likely to be ongoing inflammatory statements from both sides, the risk of a large-scale confrontation in the next week is low. However, Brent will maintain a geopolitical price premium of at least $3/bbl through the week.
Geopolitical Unrest – Positive
Global Economy - Negative
Oil Supply – Positive
Oil Demand – Neutral
How We Did
As companies look toward market recovery, these new drilling and completions technologies will help producers boost efficiencies and streamline operations
The company reported increased capacity and accelerated cycle times at production plant.
FPSO swivel stack sealing technology reduces downtime for offshore projects.