The Davos of Energy Shows Global Belt-Tightening
WTI Crude Oil has been as volatile as any other in 2016. This week aligns with the IHS CERAWeek that goes through to Friday with many prominent speaks and is known as the Davos or Superbowl of the energy world. in a similar manner than Iranian production continues to threaten a continuous price advance.
Because IHS CERAWeek combines many of the best minds of the Oil industry, you can effectively stand on the shoulders of many movers and shakers of the oil industry to see what is coming on the horizon. So far, we’ve heard that M&A deals will likely be scarce as acquirers would have to absorb the liabilities of the takeover firm per Occidental Petroleum. Additionally, there has been a discussion about Iran calling the potential freezes of production ‘Ridiculous,’ which aligned with overall sour risk-sentiment outside of energy thanks to Brexit headlines to bring Oil lower by 6% on the day to $31.39/bbl.