Author: johnkilduff

Oil prices are down over $1.00 per barrel, as OPEC cut its demand growth outlook in its latest monthly report. The cartel has finally recognized the drag on demand from China’s slowing economy. We expect the IEA, and EIA to do the same in their upcoming monthly reports.… Read more

Oil prices rallied along with equities on Friday, after realizing the Fed would not be tapering anytime soon, due to the persistent lackluster jobs data. As we discus above, the data are middling, but they are in the right spot in terms of allowing for more asset purchases.… Read more

The resiliency of crude oil prices showed themselves, again, yesterday. The huge drawdown in inventories reported on Tuesday and Wednesday in the weekly reports were punctuated by a Genscape report, yesterday, that indicated Cushing, OK crude oil inventories fell over 1 million in the past week.… Read more

Brent crude oil was the tar of the complex, yesterday, on word that South Korea would resume subsidies for refiners to purchase crude from other than Middle East sources. The subsidies cover the additional transit costs from the farther flung production sources.… Read more

Crude oil prices are slightly lower this morning, after rallying back, yesterday. Production issues in the North Sea sparked the rally, but the latest problems appear fleeting. Oil prices also ignored the negative ISM Manufacturing reading, yesterday. While we believe prices are likely to fall, we seem to have an increasing amount of company, which is worrisome.… Read more

The weekly inventory surprised versus consensus, regarding the reported rise in crude oil stocks. Overall, crude oil inventories in the US are now at an all-time record. Prices sold off, initially, but then rebounded. Gasoline inventories showed a decline, and that enabled gasoline to exert some seasonal leadership and pulled prices back up across the complex.… Read more

Crude oil prices are falling further, building upon yesterday’s losses. The IMF and OECD cut their economic forecast for China’s growth rate, and oil prices took that news hard. We often refer to China as the swing-demand center much as Saudi Arabia is the world’s swing producer, being a price maker in terms of its supply activity.… Read more

Crude oil prices are under pressure from the IMF’s diminished outlook for China’s economy. China is the swing demand center, and the crude oil bulls have to worry most about China’s outlook. Still, prices remain elevated in relation to supply levels, and may now come under pressure from demand concerns.… Read more

Crude oil prices are back on the rise, nearing the $95 level for WTI. The improving economy and geopolitical concerns are helping to stoke the demand outlook. We have mentioned the looming summer demand from direct crude burns in Saudi Arabia and Japan.… Read more

Crude oil prices are falling on word out of the world’s swing demand center, China, that manufacturing activity is contracting. The HSBC flash manufacturing PMI hit the tape around 1:45AM New York time and showed a reading of 49.6 for May.… Read more