Source: RADAR | February 9, 2017

Is anyone else feeling whiplash from the abrupt turnaround in oil markets?

The wild rollercoaster-like weather the US has been experiencing this winter seems an apt metaphorical backdrop to the abruptness of this presumably still-nascent recovery.

We’ve remarked on this recently in our various publications, noting the surprisingly large recent jump in the rig count that seems to be tracking future oil price gains that aren’t likely to materialize and the startling reversal (+2.7%) in day rates over the past 2 months. 

A crude oil export boom?

And now we hear prognosticators suggesting that US crude oil exports could top 800,000 b/d this year, ostensibly in response to OPEC production cuts offsetting a surge of oil production owing to President Trump throwing off the industry’s regulatory shackles.

At the risk of repeating ourselves, we detect a bit of irrational exuberance in the air.

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