15 Quotes by Craig Pennington

The past couple of days have been based on one entity's view of what January's weather will look like and that hasn't been enough to establish a price trend.

With oil prices at $60 a barrel it was a foregone conclusion they were not going to cut. If you do see disruption from Nigeria, if you do see disruption from Iran, the oil price will go substantially higher from here. So OPEC is reluctant to start turning the taps off just now.

The oil market has been driven by speculators, by hedge funds, by pension funds and by commodity indexes, but the fact of the matter is that it's mostly been driven by the fundamentals. Prices are supported by the fact that there is no spare capacity.

There isn't the spare capacity to make up for the missing production in the Gulf of Mexico. OPEC used to have 4 to 5 million barrels of spare capacity. That's down to about 1.5 million barrels a day this year.

A bit of the premium in the oil price on Iran has been taken off today. The market interpretation (of U.S. comments) is that there will be no sanctions and that oil won't be used.

A bit of the premium in the oil price on Iran has been taken off today.