What's Affecting Oil Prices This Week (Feb. 5, 2018)?

Monday, February 5, 2018 - 9:46am

In the week since our last edition of What’s Affecting Oil Prices, Brent prices softened slightly to average $69.15/bbl.

For the upcoming week, Stratas Advisors expect Brent prices to continue to pull back and average $68/bbl. This week the analysts expect the Brent-West Texas Intermediate differential to remain steady around $4/bbl.

Geopolitical: Neutral

Geopolitics will be a neutral factor in the week ahead with little news on the geopolitical front that is likely to influence prices.

Dollar: Positive

After brief strength due to better than expected jobs data, the dollar will likely continue to fall. With the stronger relationship between crude and the dollar, the dollar weakening will lend support to crude.

Trader Sentiment: Positive

Still strong long positions are reflecting positive trader sentiment, despite the risk of a correction in such overbought territory.

Supply: Negative

Supply will be a negative factor in the week ahead as U.S. rigs and production continue to increase.

Demand: Neutral

Demand remains generally strong although fluctuating weather throughout the U.S. continues to temporarily impact flows.

Refining: Neutral

Refining margins rose slightly again last week, but are likely not high enough to incentivize additional increased runs.

Ashley Petersen

Ashley Petersen is the Lead Oil Market Analyst at Stratas Advisors, a global consulting and analytics provider for all facets of the oil and gas markets and related industries. Ashley has over 5 years’ experience analyzing crude oil markets with an emphasis on Atlantic Basin fundamentals.

 See full bio

Want To Learn More From Stratas Advisors?

Sign up for Stratas Advisors emails alerts to keep up to date with each segment of the energy sector value chain, analyzing impacts with respect to related industries.

Sign up here