Month: October 2013

Oil prices fell back on Friday, and are lower overnight, getting dragged down by the debt ceiling showdown. There are other bearish elements at work, however. The crude oil inventory rise reported last week was a blow to the bull case, despite the slight drawdown at Cushing.… Read more

Oil prices caught the relief rally that was due to progress on Capitol Hill. The rally was significant, and it once again produced a rejection of the recent sell-off. For third time in several sessions the $101 support level held. This occurred despite the previous day’s inventory report, which was solidly bearish.… Read more

Oil prices experienced compelling losses, yesterday, and the sell-off got the attention of market participants. But, as we mentioned, yesterday, prices have gone nowhere still, in months. WTI prices rebounded back above $102 for most of the overnight. The gains have eased, and prices are back below the $102 support level, and may finally breakdown.… Read more

If you like a good story, this is increasingly a difficult space to read. Oil prices have tantalized with the prospect of breaking above $110 and below $102 several times over the past several months, but have repeatedly reverted to their comfort zone near the middle of the range at $104.… Read more

The relatively new phenomenon of headline risk attendant to pipeline operations was on full display, yesterday. The day started off with word that operation of the Seaway and Ozark pipelines were reduced, affecting flows out of Cushing, Oklahoma. This induced a sell-off as traders imagined oil backing up mightily, once again, in te recently storage center.… Read more

WTI oil prices are back on the decline, due to the increasing prospects of a US debt default and continuing budget standoff. Prices appeared to be on this trajectory last week, as well, until news of the in-service of the southern leg of the Keystone pipeline hit the tape.… Read more

WTI oil prices were upended, yesterday, on news that the 700k bpd Keystone pipeline Cushing Oklahoma to the Gulf was basically finished and should start up by November. The news punctuated the weekly inventory, which showed a sizeable rise in overall US inventories, but a further small decline in Cushing inventories.… Read more

Our analysis of the government shutdown is set forth above in the Macro section. WTI oil prices rebounded, after finding support $101 per barrel, yesterday. Some of the bounce was attributable to perceived progress on avoiding a shutdown, but the aftermath is not so bad, right now.… Read more