Bitcoin Forum

Oil prices have risen by a further 1% to $64 per barrel (Brent) and a good $56 per barrel (WTI) as the new week begins, after having already surged by just shy of 10% and nearly 8% respectively last week. These were the steepest percentage weekly gains in 5½ years and more than 4 years respectively.

What is remarkable is that the prices increased despite reports of a larger (over) supply. Both the International Energy Agency and OPEC reported that OPEC oil production in March had climbed to 31 million barrels per day, thus exceeding the current call on OPEC by approx. 2 million barrels per day.

Market participants, however, are currently choosing to focus more on the apparent (provisional) end to the shale oil boom in the US. On Friday evening, Baker Hughes reported the 19th consecutive weekly decline in the oil rig count. Oil rigs fell by an additional 26 to 734 last week, putting them at their lowest level since November 2010. The oil rig count has thus dropped by more than half since the beginning of the year.

Money managers are jumping on the bandwagon and exacerbating the price rises with their purchases. According to the CFTC, speculative net long positions in WTI rose for the third week running in the week to 14 April. They soared by nearly 70% during this period, and at 238,600 contracts are at their highest level since the end of July 2014.

(Source: http://fxwire.pro/Oil-prices-post-steepest-weekly-gains-in-years-27137)

It doesn't come as a surprise. In fact I expected this to happen and it's just a matter of time that the price will slowly inched its way back up again. Oil prices over the past few months have been severely manipulated and the reason given on why production output was not slashed to stabilize the price has not been very convincing per se.

Despite production of oil rising prices still go up? How come? Did I miss some worldwide events which caused this trend? We are going back to price of $100+ for a barrel from 2008 slowly...

It might just be bottom picking. from the ZH report, the oil company busts are coming Q1 2016 and PE firms are waiting in the wings, loaded up - they've been ready for months but bottom packers may have given the sector a little pop. Expect sub $80 til the shale co's fall over.

Oil prices will make new all time high records in coming weeks and that will also impact on the prices of bitcoin. People who bought oil at cheap they will sell and then profit will be incested in Bitcoin and again huge pump will come . I believe now price of oil and bitcoin are related to each other somehow.

I see no correlation between bitcoin and oil. Nor do I see oil rising to an all time high in the next few weeks. It took a few months to get down here and it's going to take as long, if not longer, to get back to the $100s that oil has enjoyed.

It is idiotic to say that there is a strong correlation between bitcoin and oil.


Oil prices are not going back to $100 levels in the near future. The Saudi oil output is nearing all time high, and the reduction in the US shale oil output is being offset by other producers. And we should also remember that a number of nations are currently not producing oil at normal levels (Iran, Iraq, Libya, South Sudan.etc) due to various reasons. Once they are back, the oil price will dip further.

One word. Earthquakes.

http://www.npr.org/2015/04/23/401624166/oklahomans-feel-way-more-earthquakes-than-californians-now-they-know-why

maybe?

yeah, good joke, mate :))) made me laugh about your correlation

The longer the price of oil stays low, the higher the peak will be afterwards.
It's all been a big political game by the Saudis, they are indirectly attacking American shale, the Russians and the Iranians by accepting a big loss in their own oil exports.

Now that shale is falling, the Saudis seem to be willing to wait out both other OPEN member and non-OPEC members until they all get together and agree a fair deal to reduce the amount of oil pumped.

It is fair enough really, everyone looks to the Saudis to turn off the pumps, but all that happens is that the others step in and profit at their expence, I can see why that would annoy them!

During the past few months, the Saudis have increased their oil output from 9,700,000 barrels a day to 10,200,000 barrels a day, while the Russian output has remained stable at 10,700,000 barrels a day. The Saudis want to overtake Russia as the no.2 oil producing country (behind the USA), and therefore they might not be interested in any negotiations.

http://www.bloomberg.com/news/articles/2015-04-23/saudi-arabia-s-solution-to-global-oil-glut-pump-ever-more-crude

Iran is suffering from the double impact of sanctions and low crude prices. Maybe that is what the Sauds really want.

I do wonder if at some point in the future, when the oil isn't quite so easy for the Saudis to get to, they will rue times like this.
Right now they can get it out of the ground for about $10 a barrel, so they make money on every barrel pumped, but $20 and pumping 10% more is crap compared to making $90 a barrel and pumping 25% less.

At the moment it is all fine and dandy, but wait a while and I think they will wonder what they did with their once massive oil reserves.  It happened to the UK, only now do we look and see that we essentially wasted the income, whereas Norway has done it right by investing the revenue for the population.

They are thinking about how to manage the present, rather than what will happen in the future.
If they cut production, they will have to lower welfare spending and that may not be very good for the future of the Sauds.