Category: Oil Pricing

Brent crude oil rebounded, yesterday, and is holding the $106 level, while WTI continues to be weak, remaining below $105, nearing $104. The situation in Libya is the primary catalyst for the relative Brent crude strength. Even though exports are on the rise, production is said to be at 250k bpd, not 350k, as was reported late last week.… Read more

This is what a bear market looks like – bullish news gets ignored and bearish news gets embraced. China’s services PMI for October expanded to the highest level in 18 months and two refinery snags are reported on the wires, and the energy complex is lower, regardless.… Read more

Reported growth in China’s manufacturing sector, the most in __ months, lifted oil prices for a time overnight, but the gains have not held, early on. Both Brent and WTI crude fell, yesterday, as the profit-taking on the recent widening of the spread occurred.… Read more

Crude oil prices are lower this morning, as the current protagonist, Libya improves its oil output. According to a Libyan oil minister, production has rebounded to around 300k bpd, with exports around 200k bpd. Prices were supported, earlier in the week, by news of a virtual halt of Libyan output, due to the latest round of internal political strife.… Read more

Libya is generating considerable headline risk for Brent crude oil prices, especially, at the moment. Prices have surged and fallen back on various reports of output halts and restarts on Monday and Tuesday. This morning, Hess, which is now a company mostly focused on exploration and production, warned that civil unrest in Libya would keep its Libyan production at the low end of estimates going forward.… Read more

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