DUG Permian Recap and Oil Price Slide

In Episode 22, Trisha Curtis and Ethan Bellamy discuss crude oil prices and the backslide to $66 as the market digests two negatives: the increased baseline allocation to the United Arab Emirates within OPEC and fears of the delta variant of COVID-19 reducing demand. Trisha sees WTI crude as appropriately priced in a band of $65 to $75, while Ethan sees further short-run weakness in oil to $63 for the August contract, but is more bullish on natural gas to $3.70 week on week on summer heating demand. Trisha provided some thoughts on DUG Permian & Eagle Ford, where she spoke last week. The mood was bullish 2014, which she finds a bit too optimistic given OPEC spare capacity. Producers are bulled up, which may not be helpful for US supply, which should be growing and suppressing the price.


You Might Also Be Interested In