Author: johnkilduff

The oil market showed some weakness, yesterday, more on the WTI side. Last night, the API reported that overall crude oil inventories rose, while refiners reduced output further, as seasonal maintenance kicks in. The renewed cold weather and return of the polar vortex continues to support heating fuel prices and the complex in general.… Read more

Oil prices are fractionally lower to start the week. The warm weather respite of the past weekend is rapidly fading memory, and the week ahead will renew the focus on heating fuel demand. Last week, the weekly inventory report showed a lower-than-expected decline distillate fuels, and that helped cap the recent rally.… Read more

The price action in the oil market has quieted. Yesterday saw little change, and overnight prices are little changed, as well. The market is being pulled higher by the continued strong outlook for heating fuel demand, and pushed lower by the increasing level of refinery maintenance in the US, which will continue to impact domestic demand, allowing for overall inventories to rise.… Read more

The Chinese PMI manufacturing reading of 48.3, referenced above in the Macro section is also weighing on crude oil prices, although marginally. China and its crude oil demand is one of the key metrics of oil price forecasting. The concerns over China economic outlook have been growing, due to China’s withdrawal of liquidity and crack down on local lending and their overheated housing market.… Read more

Crude oil prices continue to show impressive strength. WTI prices surged, yesterday, on dubious rationales around the market. If anything, Libyan oil production looks to be on the rebound and winter fuel demand will end soon, believe it or not. Still, those extraordinary low stocks of the distillate category of fuels, which includes heating oil and diesel fuel, continue to support.… Read more

Oil prices remain elevated, due to decent economic data and weather-related heating fuel demand in the US. There was some hope for a prolonged warming trend developing for the Eastern half of the US, but the forecasts have turned colder again.… Read more

WTI oil prices have fallen back below $100 per barrel, despite an upbeat outlook from the IEA in its monthly energy outlook. The IEA notes that global oil demand has remained “surprisingly robust,” citing the economic recovery in the OECD nations.… Read more

Oil prices are rallying this morning, both WTI and Brent, as demand for both blends and their associated refined products remains strong. The winter fuel demand in the US and the Northern hemisphere for that matter has been robust. The latest winter ravaging is set to occur in the Eastern half of the US, and many in the Northeast woke up to below zero temperatures this morning.… Read more

WTI oil prices held their gains from Friday, although Brent prices fell back. The tale of two price markers played out, as Brent saw downward pressure from increased Libyan output and, yet, another North Sea Buzzard Field fix. The spread narrowed, as WTI is expected to get further support from the drain on Cushing supplies from the Keystone pipeline start-up.… Read more

WTI oil prices surged above $100 per barrel on Friday, vindicating our call for prices to surge above the century mark. It was a somewhat surprising surge, as there was a lack of news. The cold weather continues to generate significant heating fuel demand, and overall distillate fuel levels are so low that the US is attracting heating oil imports from Europe.… Read more