Hero Technologies Inc (HENC)

[mattd]

Hi all - today's little positive news for oil prices. Good time to drill!! Cost of rigs have fallen sharply.

Oil Prices Rise on Russian Intervention in Syria
By Shiv Mehta | Updated October 08, 2015

Oil futures approached $50 per barrel today as traders shifted their focus from high supplies to declining oil production in the U.S. and Russia’s military operations in Syria, which is likely to disrupt the flow of oil in the region. West Texas Intermediate (WTI) crude oil futures for the month of November jumped from $47.81 to $48.60 a barrel, an increase of 170 basis points, on the New York Mercantile Exchange (NYMEX).

The Price of WTI Crude oil has increased this week as plunging oil prices over the last year prompted energy companies to cut their capital expenditure leading to a decline in rig counts and a decline in production in the U.S. Last week, Baker Hughes (BHI) reported a sharp decline in the rig count, leading to increase in oil price earlier this week. Ritterbusch and Associates, an energy advisory firm, said, “This week’s rig-count data, due Friday, will be closely watched.” He added, “Any additional rig decline tomorrow would be expected to spur further price support.”

Oil prices have been further boosted by growing global demand. Abdalla Salem El-Badri, secretary general of OPEC, said to the IMF, “World oil demand is estimated to increase by 1.5 million barrels per day in 2015, higher than the initial projection.” He added, “In 2016, improvement in global economic activities is anticipated to support world oil demand to grow by 1.3 million barrels per day."


Read more: Oil Prices Rise on Russian Intervention in Syria http://www.investopedia.com/articles/investing/100815/oil-prices-rise-russian-intervention-syria.asp#ixzz3o5BBpEBS
Follow us: Investopedia on Facebook