China and India have had considered on creating a “club” which will negotiate better prices with oil exporting countries and will be looking to import more U.S. crude oil in order to reduce OPEC’s sway. Two of the world’s largest oil importers, second and third respectfully, have exchanged senior level visits several times to discuss the premiums placed on oil sold to Asian nations. India, which imports more than 80% of its oil requirements, has seen oil prices increase to more than $75 a barrel.
Oil prices are taking a breather today after Wednesday’s strong rally due in large part to the gasoline inventory draw and low production levels in Venezuela.
WTI oil prices rose Monday morning to $56.94/barrel due to a barrage of bullish headlines which puts this year’s oil rally north of 22% and climbing.
After a sharp rally to begin the year, oil prices have been trading in a tight range over the past two weeks and are waiting for their next cue to determine price direction.
With the partial government shutdown milling around out there, oil has found a way to stay the course. Seeing that energy production has become essential for the U.S. Economy, the Bureau of Land Management as issued exemptions for the energy fields. The Bureau of Land management is the governing body that oversees oil and gas activities on federal land. The employees working are being paid by way of unspent funds from previous years currently. Little speculation has been made as to how long those funds will actually last.