It is finally Friday. Many of us have had a long week and we are finishing the week strong. We are looking forward to a glass of champagne in our pjs since it is finally the weekend and we made it through the week. Ok, maybe that is just *some* of us.
Back to business before bubbly…
We are not the only thing that is finishing the week strong – oil is up.
Oil reportedly closed at a three-year high today – check out the Wall Street Journal article entitled Oil Closes at Three-Year High: Light, Sweet Crude for May Delivery Settled Up 32 Cents, or 0.5%, to $67.39 a barrel. According to today’s Wall Street Journal article: “Prices have climbed as supply cuts from major oil exporters and strong global demand have helped ease a longstanding glut. Increased geopolitical risk has also put a premium on crude, as production from countries like Iran and Syria has been threatened.”
According to Bloomberg Energy, WTI Crude Oil is at $67.39 per barrel and Brent Crude is at $72.58 as I write this.
The uptick was also discussed in Bloomberg’s article, Oil Posts Biggest Weekly Gain Since July Amid Global Conflict, featured in Oil & Gas 360.
Bottomline – oil prices are up. Good news – champagne Friday. Bad news – the reasons behind the bump in prices.
According to many folks in the know, the jump in prices is at least partially attributable to big-ticket issues that stress us all out, like major potential conflict. IE: the Wall Street Journal article notes supply concerns due to potential conflicts in the Middle East and trade tensions with China and Bloomberg’s article notes “geopolitical tensions from Saudi to Syria boosting prices.”
The jump in prices is also partially attributable to that good ‘ol surplus we had forever finally reducing – it has always been about supply and demand.
Coco Chanel famously said, “I only drink champagne on two occasions: when I am in love and when I am not.” Those of us in the energy industry have a similar mindset when it comes to oil prices – we only drink when prices are up and when prices are down. I am kidding…today, we toast to finishing the week strong.