Summer Doldrums. Traders take Neutral Position and go on Vacation for two weeks. Why bother . . .

[SKEP + 229]

Can't see any surprises over next few weeks. 

Maybe China wants to talk ahead of new 10% Tariffs, but doubt it.

Maybe Iran bombs another tanker, but doubt it.

Longer term news of the Cactus II and EPIC Permian pipelines going commercial in September could scare prices down.  

KPMG Oil Analyst in Houston said while new well drilling activity is coming down a bit , production increasing as DUCs in Permian being fracked in anticipation of new pipelines coming online next month.

As DUC inventory decreases Texas will see marked increase in drilling activity by  Q1- Q2 2020 to feed the 2.47 mm bbl/day Permian pipeline capacity to export terminals.

BP plans to double their Permian rigs next year.  Increase total shale rigs to 25. Many other producers thinking along same lines.

Otherwise continue to trade between $54 to $58 WTI.  

Edited August 2, 2019 by SKEP