Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

Price of Crude Oil Today Breaks Above $35 on These IEA Comments

This is a syndicated repost courtesy of Money Morning - We Make Investing Profitable. To view original, click here. Reposted with permission.

The price of crude oil today(Friday) just hit its highest level in over a month – thanks to some bullish comments from the International Energy Agency (IEA).

Liquidity moves markets!

Follow the money. Find the profits! 

At 11:15 a.m., the West Texas Intermediate (WTI) crude oil price gained 2.5% to trade at $35.43 a barrel. This marks the first time since Jan. 29 that the U.S. benchmark broke above $35. Futures for April delivery are now up 5% just this week alone.

The Brent crude oil price also leaped higher this morning. The global benchmark – priced in London – ticked up 2.4% to $37.96.

Here’s exactly what the IEA said that boosted the price of crude oil today…

What Pushed the Price of Crude Oil Today Above $35

Both Brent and WTI crude oil prices have been on the rise this week after a senior analyst from the IEA said prices will rebound in 2016 and 2017.

For its long-term forecast, the agency expects oil prices to reach the $80 range by 2020.

Oil prices appear to have bottomed out,” said Neil Atkinson, the new head of the agency’s oil market division, at a seminar in Oslo, Norway. “Prices are expected to grow throughout 2016 and into 2017, reflecting expectations that the market is going back into balance in 2017.”

One of the reasons oil prices will rebound is steadily increasing demand.

According to the U.S. Energy Information Administration (EIA), global consumption will reach 96.5 million barrels a day in 2017. That’s a 2.9% increase from 93.8 million last year.

But that’s not the only reason why the price of crude oil will rally over the long term.

In fact, this chart shows another trend that will send prices toward $70 a barrel by Jan. 1, 2017…

The Huge Trend Making the Price of Crude Oil Rise in 2016

price of crude oil todaySince January 2015, the U.S. oil rig count has fallen a staggering 72% from 1,421 to 392.

According to Baker Hughes Inc. (NYSE: BHI), which tallies the number of North American rigs each week, last week’s count is the lowest of the decade.

Money Morning Global Energy Strategist Dr. Kent Moors – an oil industry veteran whose career as an energy advisor to U.S. and Russian governments stretches over four decades – says the rig count will continue to fall as most U.S. wells near the end of their output cycles.

That’s because a typical shale oil well churns out most of its volume within the first year and a half. Since the crash in oil prices started about 18 months ago, U.S. wells are now starting to see a steep drop-off in output.

“The U.S. rig count has declined precipitously… that can’t help but lead to a drop in supply, especially when it comes to shale or tight oil,” Moors explained last year. “It’s called the decline curve and can’t be finessed forever.”

The declining rig count and increasing global demand will more than double the price of crude oil by this summer.

“By July 1, 2016, WTI should be at $66 and Brent at $70,” Moors forecast on Dec. 9. “By the beginning of the fourth quarter, WTI at $68, Brent at $72.”

To get full access to all Money Morning content, click here

About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

Disclaimer: © 2016 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.

The post Price of Crude Oil Today Breaks Above $35 on These IEA Comments appeared first on Money Morning – We Make Investing Profitable.

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Try Lee Adler's Technical Trader risk free for 90 days! Follow the money. Find the profits!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.