Author: johnkilduff

Oil rebounded mildly, yesterday, on word of a refinery in the Midwest, and news that pipeline operator, Enbridge, was apportioning carriage volumes on several of its Canadian and Midwest lines. The market was also oversold, after falling so rapidly over the course of the past several sessions.… Read more

Oil prices continue to exhibit significant weakness, after having broken through key support levels. The recent sell-off was punctuated by the large rise in crude oil inventories reported by the EIA, yesterday, of 5.2 million barrels. The Cushing glut has moved down the line to the Gulf Coast, where pricing is now $4.00 per barrel lower than WTI.… Read more

The API reported another large crude oil inventory build, in its report last night, which should be confirmed by the EIA report later this morning. Crude oil inventories rose by 3 million barrels and Cushing, OK inventories rose nearly 500k. The November WTI futures contract expired in weak fashion, increasing its discount to the now front-month December contract, which fell precipitously in overnight trading, below $97.… Read more

The expiring November WTI and the second month December WTI contract both closed below $100 per barrel for the first time since July. We have long bemoaned the extended the pattern of consolidation between 102 and 109, and now we have the beginnings of a breakout.… Read more

Front-month (November) WTI futures have spent most of the overnight session below $100 per barrel. This is the first break of that level, since July. The November contract expires tomorrow, but the December contract has also broken below $100. The floodgates of selling may be on the process of opening.… Read more

Crude Oil prices spiked higher, yesterday, as those who sold everything, betting on a debt default, covered everything, due to the debt deal. WTI prices surged back above $102, which is the bottom of the painfully long running range between $102 and $109, which has persisted, since mid-July.… Read more

Oil prices continue to be buffeted by the debt wrangling in Washington, and get mild support from supply issues. One such issue, the threatened strike at the Grangemouth refinery in Scotland, has cleared. The strike has been called off. The situation had diminished, anyway, on word that North Sea crude would flow.… Read more

Oil prices were affected to a degree, yesterday, by the machinations on Washington, as the risk-on trade emerged, after hopes of a deal to avoid default were raised. We failed to mention a key data point, yesterday, however: China crude imports rose to a record, while exports declined, emblematic of the slowdown in Europe.… Read more

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