Author: johnkilduff

The news out of Iraq this morning is that the large, 300k bpd, Bajii refinery is about to fall into the hands of ISIS fighters. The oil market complex is nonplussed, probably because the lost output will not likely be replaced via imports given the lack of security within the country.… Read more

More ground has been captured by insurgents in Iraq, and the rapidly developing situation has caused a surge higher still in oil prices. Brent topped $112 per barrel, and WTI traded above $107. The oil market had been pacing the developments and reacted mildly, at first.… Read more

The recent strength of WTI prices persists, with prices surging above $104. The rise is attributable to the strength in Chinese exports which soared 7% last month, as consumers worldwide bought up Chinese made goods. This helps everyone look past China’s internal problems and take a more positive view of their economic prospects going forward.… Read more

WTI prices are displaying a relative calm, after showing little reaction the moves by the ECB to combat inflation. In fact, it seemed like the complex was experiencing an inside baseball day, with Brent-WTI spread showing some volatility, as it reversed after hitting a key narrowing point.… Read more

Crude oil prices are back on the rise, back above $103, this morning. As happened two weeks ago, a modest decline in overall crude oil inventories is having an outsized reaction. The API reported a 1.8 million barrel fall in US crude oil inventories last night.… Read more

WTI crude oil prices are lower this morning, after falling, yesterday. Bloomberg and Reuters surveys of OPEC output showed the cartel pumping just 30 million bpd, and that is a compelling fundamental data point. As we mentioned, yesterday, the output rise comes courtesy of increased output from Iraq and Angola, which more than offset the losses from Libya.… Read more

WTI crude oil prices continue to remain elevated, near $103, despite ample inventories. The overall inventory level rebounded in last week’s report. Still, the global balance remains constrained by troubles in Libya. But the paradox there is the fact that OPEC is pumping 30 million bpd, which should keep a lid on further gains.… Read more

WTI oil prices spiked higher, yesterday, as the weekly EIA inventory report confirmed the fairly large crude oil inventory drawdown that was previewed by the API on Tuesday evening. Refinery utilization rose back above 90%, indicating demand is there. Overall, inventories remain very high, so it is somewhat difficult to square the strength of the move as being attributable to the report.… Read more

WTI oil prices have climbed above $103, due in part to a large drawdown in US inventories, reported by the PAI last night. Crude inventories fell over 10 million barrels, according to the report. The drawdown was attributable to a large drop in imports to 6.78 million barrels per day, which is significant.… Read more

The new front month July WTI contract is in familiar territory near $102. The usual suspects or factors are at work to support prices. There continues to be no progress in the revival of Libyan oil output, despite repeated deals being struck.… Read more