That was a Crazy Day on the Dow

[HawgWild]

I can't see things settling down for awhile. Anything with exposure to oil, with perhaps the exception of refining, can't go anywhere but down in this environment. China trying to operate capitalism in a communist country is another recipe for failure.

[BigBrandonAllenFan]

[cutehog48]

Can't vote democrat....LOL  I wonder when oil will go up?

[DeltaBoy]

I have been staying away and let my Edward Jones guy sweat it out.

[BigBrandonAllenFan]

Can't vote democrat....LOL  I wonder when oil will go up?

Probably not anytime soon... Too many countries trying to stabilize their economies with new oil.  Russia is the real bully in the whole dealio.  Those dudes won't run out of Siberian oil for a ton of years.  Russia owns vast land that lies in 12 time zones, or half way around the world, whichever you prefer.  The sub Arctic evergreen timber belt is loaded with oil. You couldn't burn it all in a millennium.

Basically, with the South American, Russian, African, and middle eastern sectors overstocking the world with oil that is produced rather cheaply, the prices could stay low for a long time.   Even now, Canada seeks to become a big player in the world oil market, further expanding supply, which of course leads to less demand, which leads to low prices.  It seems every country in the world these days is producing oil.  There are many.  You add the northern plains of the USA's production in the mix and the pressure mounts on the world market given the USA consumes about 1/3 of the world's oil.

Personally, I thank President Obama and his apparently brilliant energy policies..  He is truly the gift that keeps on giving.  I'm sure folks with any common sense would agree.

[BigBrandonAllenFan]

http://www.marketwatch.com/story/crude-hovers-at-31-a-barrel-as-supply-worries-fester-2016-01-27

Oil ends at 2-week high as talk of oil-producer cuts grow
EIA reports U.S. crude supplies up 8.4 mln barrels

Published: Jan 27, 2016 3:18 p.m. ET
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Oil futures settled at a more than two-week high on Wednesday, buoyed by growing expectations that major oil producers may come to an agreement on output cuts, as U.S. government data showed a dip in domestic crude production.

March West Texas Intermediate crude CLH6, +2.29%  rose 85 cents, or 2.7%, to $32.33 a barrel on the New York Mercantile Exchange. That was the highest settlement for a most-active contract since Jan. 8. Prices were trading around $30.69 before the release of the production data.

March Brent crude LCOH6, +3.65% the global oil benchmark, jumped $1.30, or 4.1%, to $33.10 a barrel on London's ICE Futures exchange.

Gains accelerated after Reuters reported that the head of Russia's state-owned oil pipeline company Transneft said Russian officials have decided that they should take to the Organization of the Petroleum Exporting Countries about oil output cuts.

WTI prices had climbed 4% on Tuesday, buoyed by talk of potential cooperation among oil producers, but many analysts are skeptical of any agreement to cut output.

Read: Talk of OPEC oil-producer 'cease-fire' met with skepticism

Ahead of oil's price settlement Wednesday, the U.S. Federal Reserve expressed less eagerness to raise interest rates.

The statement wasn't hawkish enough to spur a rally in the dollarDXY, -0.05% so "the near-term outlook for oil futures remains neutral as the recent sell off continues to be consolidated," said Tyler Richey, co-editor of The 7:00's Report. "But the risk of a further short-squeeze rally remains fairly high into the end of this week."

U.S. oil output falls, supply climbs

The U.S. Energy Information Administration reported Wednesday that domestic oil production inched lower by 14,000 barrels a day to total 9.22 million barrels a day for the week ended Jan. 22. Output had peaked at 9.7 million barrels a day last April, has remained stable at around 9.2 million barrels a day in recent months.

The 14,000-barrel output decline is "definitely not much," said Richey, "but it's all about the trend."

In the last two weeks, "the trend of increasing production is starting to moderate, which again, isn't outright bullish yet, given the ongoing global production surplus, but it is at least 'less bearish'," he said.

Longer term, "we are going to need to see much more substantial weekly production declines and a decisive trend of lower U.S. output develop for the fundamentals to begin to get more bullish," Richey said.

The EIA also said crude inventories climbed by 8.4 million barrels last week. That was more than the 3.5 million-barrel rise expected by analysts surveyed by Platts, but it was smaller than the increase of 11.4 million barrels reported Tuesday by industry group the American Petroleum Institute.

Gasoline supplies rose by 3.5 million barrels, while distillate stockpiles fell by 4.1 million barrels last week, according to the EIA....

[BigBrandonAllenFan]

Oil futures trim gains as hopes fade for output cut

By Myra P. Saefong and Jenny W. Hsu
Published: Jan 28, 2016 11:21 a.m. ET
 
OPEC delegates say no plan for Russia meeting: report
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Oil futures remained higher but gave back much of the sharp rally scored early in the session after a news report said officials from the Organization of the Petroleum Exporting Countries denied plans for a meeting with Russia over potential output cuts.

March West Texas Intermediate crude CLH6, +3.37%  rose $1.02, or 3.2%, to $33.32 a barrel on the New York Mercantile Exchange after trading as high as $34.82. March Brent crude LCOH6, +2.96%  on London's ICE Futures exchange rose $1.19, or 3.6%, to $34.29 a barrel.

OPEC delegates said there were no plans to hold talks with Russia, Bloomberg reported.

The market had found support from reports that Russia and Saudi Arabia may consider discussing a cut in current output. A Kremlin spokesman later said Russian oil officials hold frequent talks with their foreign counterparts, but it was too early to talk about any coordinated actions, state news agencies reported.

"The drop below $30 last week raised the chance that the impossible could become possible," said Ole Hansen, head of commodity strategy at Saxo Bank. "Russia and Saudi Arabia have both looked with horror at the continued slide in the market."

In a note Thursday, T. Austin Sapp, commodity analyst at Schneider Electric, said both "diplomatic and strategic obstacles—notably Russia and Saudi Arabia's differing views on the Syrian government and the latter's obstinate dedication to the defense of market share—will prove major hindrances to cooperation."

Prices had faltered in the Asian trading day as traders digested the U.S. Energy Information Administration's report Wednesday that showed domestic crude stockpiles grew by 8.4 million barrels in the week ended Jan. 22.

While many analysts attribute the jump in supplies to seasonal maintenance at refineries rather than shrinking global demand, the data nevertheless points to a greater imbalance between supply and demand. The latest growth puts total U.S. crude inventories at 494.9 million barrels, levels not seen in about 80 years.

Natural-gas futures erased earlier losses after the Energy Information Administration said supplies declined by a larger-than-expected 211 billion cubic feet last week. March natural gas NGH16, +0.51% rose 0.9 cent, or 0.4%, to $2.166 per million British thermal units

February gasoline RBG6, +4.36% added 5.77 cents, or 5.5%, to $1.1034 a gallon and February heating oil HOG6, +1.47%  climbed by 2.81 cents, or 2.7%, to $1.0533 a gallon.

-- Timothy Puko, Brian Spegele and Sara Sjolin contributed to this article.