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The Fundamental Focus of the Oil Market Has Shifted: Oil Futures

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Oil Futures Touch Fresh Highs: Sevens Report Analysts Quoted in Morningstar

Oil futures touch fresh highs for the year on bets for tighter global supplies

“The fundamental focus of the oil market has shifted from demand — more specifically concerns that a slowdown in global growth will hurt consumer spending on refined products — to the supply side as Russia and Saudi Arabia caught markets off guard with their output cut extension announcements,” analysts at Sevens Report Research wrote in Monday’s newsletter.

Factoring in the extended cuts, “many forecasts reflect deepening supply deficits in physical markets into the end of the year and that, paired with another wave of speculators getting scared out of the market by the latest OPEC+ surprise, has resulted in the latest leg higher to fresh 2023 highs in oil,” they said.

Looking ahead, the path of least resistance is higher for oil right now, with WTI “fast approaching our initial upside target of $89 [a] barrel,” the Sevens Report analysts said. “However, we remain in the camp that the onset of a recession will derail the rally.”

Also, click here to view the full Morningstar article published on September 11th, 2023. However, to see Tom’s full comments on the current market environment sign up here.

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Tom Essaye Quoted in Barron’s on August 9th, 2023

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Oil Stocks’ Gains Have Lagged Behind Crude. That’s a Bad Sign for the Shares.

“Consumer gasoline demand has collapsed at a record pace in recent weeks,” wrote Sevens Report’s Tom Essaye, who noted that crude is likely to fall from $83 if demand doesn’t soon stabilize. Click here to read the full article.

Sevens Report Analysts Quoted in Morningstar on July 20th, 2023

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Natural-gas futures settle nearly 6% higher; oil gains

Oil prices, meanwhile, finished higher. Global demand and supply will determine if WTI crude can “trade sustainably” above $80 a barrel in the near term, analysts at Sevens Report Research wrote in Thursday’s newsletter. Click here to read the full article.

Sevens Report Co-Editor, Tyler Richey, Quoted in MarketWatch on July 5th, 2023

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Oil prices end at a 2-week high on reports Saudi Arabia said OPEC+ will do ‘whatever necessary’ to support oil

The whatever it takes’ mentality and display of unity by OPEC+ can help support oil prices in the near term” and the $70-a-barrel mark is looking to offer initial support again, Tyler Richey, co-editor at Sevens Report Research, told MarketWatch. Click here to read the full article.

Sevens Report Co-Editor, Tyler Richey, Quoted in Morningstar on June 29th, 2023

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Oil prices notch back-to-back gains a day after data reveal a hefty drop in U.S. crude supplies

The EIA’s report showed the four-week moving average of gasoline supplied, a proxy for demand, rising to the highest level since November 2021. That strong consumer demand trend is one of the reasons why WTI oil hasn’t dropped to new 2023 lows in recent weeks said Richey. Click here to read the full article.

Sevens Report Analysts Quoted in Morningstar on June 27th, 2023

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Oil prices slump, shaking off Russia mutiny

Looking ahead, the turmoil within Russia is unlikely to have a material impact on oil markets unless we see it affect production or exports of oil. Looking ahead, the turmoil within Russia is unlikely to have a material impact on oil markets unless we see it affect production or exports of oil, said analysts at Sevens Report Research, in a note. Click here to read the full article.

Sevens Report Analysts Quoted in MarketWatch on June 23rd, 2023

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Oil prices see weekly fall as central banks stoke recession worries

This heavy price action with repetitive tests of the same support and continuously weaker recoveries suggests the oil market is approaching a tipping point; poised to either break down to new 2023 lows or finally move beyond the $72-$73 area, triggering a squeeze as sentiment and positioning in the energy markets is very bearish, noted analysts at Sevens Report Research, in a Friday note. Click here to read the full article.

Sevens Report Analysts Quoted in Seeking Alpha on June 23rd, 2023

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Recession fears, central bank rate hikes sent crude oil reeling this week

WTI futures have dropped below $70/bbl four times this year with increasing frequency, but each time technical support has held at $67-$69, Sevens Report Research said, also noting each subsequent price bounce has run out of steam at a lower price point. Click here to read the full article.

Sevens Report Analysts Quoted in MarketWatch on June 23rd, 2023

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‘Heavy’ price action signals crude-oil futures near ‘tipping point’: analysts

This heavy price action with repetitive tests of the same support and continuously weaker recoveries suggests the oil market is approaching a tipping point; poised to either break down to new 2023 lows or finally move beyond the $72-$73 area, triggering a squeeze as sentiment and positioning in the energy markets is very bearish, noted analysts at Sevens Report Research, in a Friday note. Click here to read the full article.

Sevens Report Co-Editor Quoted in MarketWatch on June 9th, 2023

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U.S. oil futures fall for the session, lose more than 2% for the week

Prices had started the week moving higher after Saudi Arabia said it would cut output by an additional 1 million barrels per day in July. However, “traders faded the move,” as the Saudi cut would only remove one-third of a single day’s worth of global oil production over the course of July, said Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.