Articles by Nick Cunningham

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3 Questions For OPEC On The Eve Of Extension

On the eve of the OPEC meeting, all signs point to a significant extension of the production cuts, although some key details remain unclear. In the past, these gatherings in Vienna would typically be dominated by the Saudi oil minister, which for years…


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Oil Majors Are Leading The Recovery Race

In a sign that the oil majors have survived the three-and-a-half-year oil bust and are back on solid ground, Royal Dutch Shell announced that it will restore its full cash dividend. Shell hasn’t paid the full cash dividend in over two years, instead of…


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Why Is The OPEC Deal Suddenly Uncertain?

Investors betting on a smooth outcome at the OPEC meeting are in for a rude surprise, according to Goldman Sachs. The investment bank warned that the oil market could be disappointed in a few days because there is a higher degree of uncertainty heading…


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OPEC’s Impossible Task

OPEC is on the verge of extending its production cuts for an additional nine months, pushing the deal through the end of 2018. But the determination to keep the cuts in place comes at the same time that U.S. shale seems to be accelerating in response t…


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Venezuela Could Lose A Lot More Oil Production

After defaulting on debt, Venezuela’s crisis continues to unfold, threatening to worsen the state-owned oil company’s production. PDVSA reportedly told employees that they needed to carry out an austerity campaign, looking for ways to cut costs by 50 p…


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Citi: Prepare For An OPEC Disappointment

A week out from the OPEC meeting, everyone is assuming a rollover of the production cuts for an additional nine months will be a simple formality, putting the limits in place until the end of 2018. But what if such a scenario fails to materialize? What…


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Oil Major: 70% Of Crude Can Be Left In The Ground

Canada’s oil sands are too dirty to be produced, and should probably stay in the ground. That has long been the sentiment of environmental groups, but it is also gaining acceptance even among some of the largest oil companies in the world.  “A lot of f…


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WTI Prices Surge On Keystone Spill

Oil prices surged on Wednesday on news that the Keystone pipeline might not restart for several weeks. The outage at the damaged pipeline ended several years of contango for WTI, pushing the benchmark into a state of backwardation for the first time si…


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Shale Hedges Threaten The Oil Rally

The 20 percent increase in oil prices since September led to a wave of hedging by U.S. shale drillers eager to lock in future production at prices not seen in years. The flip side of that hedging wave is that locking in prices could cut the price rally…


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Can The Gas Glut Kill The Permian Boom?

The Permian basin continues to add new oil production, but shale drillers in West Texas could face an unexpected problem: too much natural gas. Natural gas is produced as a byproduct when drilling for oil. Oil tends to be more lucrative, so shale compa…