Quarterly Energy Comment (December 15, 2017)

by Bill O’Grady

The Market
Oil prices have recovered strongly from the mid-summer lows.  It appears we are establishing a new trading range between $55 and $60 per barrel.

(Source: Barchart.com)

This recovery was mostly caused by a steady decline in U.S. domestic crude oil inventories, a weak dollar and OPEC output discipline.  We expect OPEC to maintain output restrictions until the Saudis price their partial IPO of Saudi Aramco sometime in 2018.

View the complete PDF