Category: Oil Markets

WTI oil prices remain range bound, lacking the conviction to move substantially in either direction. Yesterday’s weekly inventory report did little to foster a breakout of the long-running range between $58 and $62. The initial headline screamed a large drawdown in crude oil inventories of 3.9 million barrels, but the exuberance was dashed by a reported gasoline inventory increase.… Read more

WTI oil prices have been a bit of a losing streak. Worries over Yemen can only carry the rally, so far, especially in the face of record Saudi production and exports. Prices are rebounding this morning, modestly, as the market reacts to another drawdown in US oil inventories, according to API data, which showed a 5.2 million barrel drawdown last night.… Read more

WTI oil prices start the week above $60, and the news flow out of the Middle East is enough to justify the price action. ISIL forces have taken the city of Ramadi in Iraq, and all of Anbar province is jeopardy of falling.… Read more

WTI oil prices continue to hover near $60, ignoring the pull of bearish factors on the supply side of the equation. The major oil output surveys from EIA, IEA, and OPEC have calculated that inventories are rising at a rate of upwards 2.0 million bpd in Q1, with a similar amount building per day in Q2.… Read more

Oil prices continue to post gains. Last night, the newly secretive API report showed a decline in US crude inventories of 2 million barrels, much of a decrease than was forecast. We will have to see if the EIA confirms the drawdown, but the primary factor will likely be diminished imports, again, in the face of strong refinery demand.… Read more

Oil prices are rallying this morning, with WTI prices back above $60, supported by a falling dollar that, itself, is being roiled by a rout in the global government bond market. We detail the bond market rout in the Macro section above.… Read more

WTI oil prices rallied further, yesterday, trading above $62 for a time. The weekly inventory was the catalyst, showing a surprise inventory drawdown of crude oil inventories. The cause was a decided drop in oil imports of about 100k bpd. Refiners are operating at high rate of 93% of capacity, but the run rate had a minimal effect on inventory levels at Cushing, OK, which should been impacted more broadly.… Read more

WTI oil prices surged above $60 per barrel, yesterday, and have rallied even more overnight to nearly $62. The reasons are varied, if not dubious. Much of the rally is being attributed to geopolitical tensions, which, on their face, are elevated.… Read more

WTI oil prices remain strong, nearing $60 per barrel, building upon a terrific rally in April. We stood back and let the rally rage on several dollars ago. The Yemen situation has registered with market bulls that see a greater conflagration beyond Saudi Arabia’s southern flank.… Read more

Oil prices continue to hover near $57. Support continues to come from geopolitical worries over Yemen and the broader Iran-Saudi Arabia proxy war. In addition, the Saudi officialdom are talking up the market, once again, claiming that the market is “perfect.”… Read more