Oil Price: Iran continues to dominate the headlines, keeping WTI above $71 per barrel and Brent at $77 per barrel as of early trading on Friday. The exchange of airstrikes between Iran and Israel is also adding to the tension. Meanwhile, aside from the huge increase in U.S. oil production, the EIA reported some bullish figures this week – a decline in both crude oil and gasoline inventories by more than expected.
OPEC sees Iranian outage as not immediate. Any loss of supply from Iran due to U.S. sanctions will take time, and OPEC won’t rush to increase output in the interim, sources told Reuters. The steep losses from Venezuela combined with the potential disruption in Iran could force OPEC to adjust production levels earlier than it had expected. But because U.S. sanctions don’t really take effect until November, OPEC is not scrambling just yet.
“I think we have 180 days before any supply impact,” an OPEC source said. They will meet in Vienna in a month to evaluate the current status of the oil market and the production limits. more …
Opinion: Our post from January 5, 2018 “In 2014-15 oil and natural gas plunged into a major bear market. Small energy companies went into bankruptcy and larger companies’ stocks plummeted. The miracle of fracking changed everything and when a company named Tesla exploded onto the scene with great-looking high performance electric cars, oil looked doomed forever.”
In May 2017, Bill Strazzullo, chief market strategist at Bell Curve Trading — who correctly called for crude’s plunge to the $30 range back in 2013 — said oil could be on the verge of a massive rally, and one month later oil analyst Dan Dicker (oil price.com) said this: “With deep regard for fundamental supply/demand, I think I can make a strong case for $120 oil in 2018.”
Oil is now at $71.
Israel has had massive (understated) energy finds since 2010:
- 2010: Massive natural gas found in the Levant and Temar fields
- 2016: Massive oil reserves found in the Golan Heights
- 2016: Israeli oil reserve located near the Dead Sea
We know that the war of Gog and Magog is over Israel’s great wealth that Ezekiel 38:11 called plunder. We know that Israel has been growing even more wealthy in 2018 with two multi-billion dollar gas sales to Egypt and Jordan, and we know that Ezekiel’s prophesied invasion will not happen until Israel is living without bars and gates (Ezekiel 38:12). And yet Russia seems content to remain friendly with the Jewish state for now.
I can’t help but wonder what will change the calculus? And I cannot help this recurring notion that an even larger energy find that will affect the global economy is on the horizon that will fulfill Genesis 49:25, Deuteronomy 33:19 and Isaiah 45:3.