Category: Oil Markets

Macro influences buffeted crude oil yesterday as equities and currencies went on a wild ride, responding to events surrounding Europe’s ongoing debt crisis. The crux is Greece, in calling for a referendum and a confidence vote in parliament.

Crude got caught up in the enthusiasm over a potential resolution to Europe’s maladies that pushed most markets around the globe higher yesterday. Supportive US GDP data also helped improve perceptions about energy demand growth in the US.

Crude market participants finally acknowledged several weeks of stockpile drawdowns, but yesterday’s surprisingly large build erased almost $4.00 from the day’s high.

Crude oil continues to register, as it has for last month or so, participants’ awareness that supplies are shrinking. Nowhere was that more apparent than in the collapse of the Brent/WTI spread and abrupt reversal from contango, which prevailed since the 2008 financial crisis.… Read more

The market has changed the temper of its affirmation from tepid to enthusiastic. Along with a perception that supplies may be tightening, the perception that policymakers will produce some eleventh hour accord in Europe unleashed buyers yesterday.

Financial market have voted the weekend efforts of European policymakers a tepid affirmative. Asian and early European equities are up somewhat as is crude oil.

Late word of Mohamar Qaddafi’s killing has had a muted effect on oil prices. There seems to be a feeling of this being a foregone conclusion, but this will begin to stabilize the situation and get more oil on the world market more quickly.… Read more

Crude oil futures dipped in the early going yesterday, for a second session, focusing on China’s Q3 economic growth, which came in weaker than expected, posting a two-year low and stoking worries about oil demand.

  ALERT: PRODUCER INFLATION EMERGES Contract Month Last Change BIAS Comment Crude Oil November 86.25        0.09 Neutral Counter-trend rally underway. Gasoline November 2.7226       -.0129 Neutral Hedgers may view this as a value area. Heating Oil November 2.9989       -.048 Neutral Hedgers may view this as a value area.… Read more

The rough equilibrium the market seemed to have staked out last week was broken in the final hours of New York trading on Friday as the market posted new highs in the after-market.