Category: Oil Markets

Investor sentiment was buoyed by more positive earnings reports, a surprising German investor confidence poll, and a favorable Spanish debt auction. The dollar and yen also faltered to the benefit of the euro. Iranian intransigence remains a wild card. Of course the, yesterday’s action begs the question, is the almost two month decline over?… Read more

Crude oil prices have reversed course higher as the European markets opened. Generous response to Spain’s short-term debt sale this morning has boosted the euro at the expense of the dollar, helping to support crude oil prices so far. News yesterday of an earlier reversal of the Seaway pipeline, inconclusive talks on Iran’s nuclear program, over the weekend, and Argentina’s nationalization of Repsol assets

Market reportage is carrying the curious warning about renewed concern over the spreading European contagion. What is so curious about it, is that any rational consideration could never have concluded that it was not going to. Moreover, was China going to be able to overcome the difficulty of monetary policy formation, given the misallocation of resources in their centrally planned economy?… Read more

May crude oil prices trended higher throughout the US trading session yesterday, supported by short-covering sparked by the loss of momentum below 101.00. This was exacerbated by a breakdown in the dollar to a new seven-day low. US economic data offered a boost in Q1 growth prospects, which was also helped propel price action back above the 104.00 level.… Read more

Just when it seemed the refining industry was coming out of maintenance season, there is another pullback in utilization. Consequently, the assumption must be made that utilization rates reflect market conditions and not maintenance. Crude stocks rose by 2.8MM bbls, the third straight weekly gain, but significantly less than expectations.… Read more

Disappointing US job growth and rising economic maladies in China sapped investor confidence for a second day, putting most markets into a retreat from their stellar Q1 performance, including the oil complex. Additionally, China reported a decline in March crude oil imports and crude oil stocks are expected to build again this week in the US, adding to the approximately 23MM bbls million barrels…

Global markets are still reacting to the disappointing US jobs data, released on Friday. Asian and European markets, which were closed yesterday, confirmed the lack of confidence that US market participants expressed on Monday. Additionally, oil market participants may be placing too much optimism on the outcome of coming talks, later this week in Istanbul, between Iran and the West,

The Labor Department released the monthly nonfarm payroll data into a void with markets closed for the long holiday weekend. Only a disappointing 120k new jobs were created versus most expectations for a gain of about 200k. The headline unemployment rate did drop by 0.1% to 8.2% not a consequence of new job gains, but rather it was more a measure of those dropping out of the job markets.… Read more

Rising stockpiles of crude oil in the US combined with concerns about downside risks to the EU’s economic outlook expressed by ECB President Mario Draghi which exerted pressure on the single currency to the dollar’s benefit, and ultimately WTI prices. The larger picture, of course, is quite simple to comprehend.… Read more

The FOMC minutes are being given an outsize role in the reversion back down of oil prices by the 24 hour news maw; so let us parse them. At first glance it seems as though the central bank is moving away from QE3, which is positive for the dollar, and so a weight on prices.… Read more