Category: Oil Pricing

Concerns for a potential supply disruption waned as tensions between Israel and Gaza eased somewhat. Caution should prevail though amid violent protests in Egypt and deteriorating conditions in Syria. The situation in Gaza was the main driver for oil prices last week, but with Thursday’s cease-fire, and so far, the truce is holding.… Read more

Prices startlingly broke from yesterday’s highs when it seemed like the events in Gaza were entering a “calm period” as a cease-fire was negotiated. Subsequently, denied prices rose over $1.00 off the day’s lows. Participants also took some comfort in Federal Reserve Chairman Bernanke’s commentary which implied, not only future stimulative monetary policy but exhortations to policymakers to find resolution to the looming fiscal cliff.… Read more

January crude oil prices trended higher throughout the US trading hours and broke out to its highest level since October 23rd. Support for the crude oil market came on rising tensions between Israel and Hamas, as well as hopes that US lawmakers could avert the fiscal cliff.… Read more

Ending the week close to the highs should have been enough of a clue of the market’s nervousness over martial Israeli action in Gaza. At this particular moment, negotiators are gathering in Cairo to arrange at least an armistice, while things are sorted out.… Read more

Initial price action yesterday maintained reactive gains from the previous session consequent to Israel’s martial action towards Hamas. A disheartening rise in initial unemployment claims and a poor Philly Fed report, at first, passed without much notice in the oil pits.… Read more

Nothing like a few headlines to shake things up. Those came yesterday after news that Israel had initiated an air strike on Gaza, which took out Hamas’ military commander. But with neither entity controlling oil production of any consequence, the rally only extended to the upper end of consolidation experienced over the last two weeks.… Read more

The focus scale has weighted towards the gloomy global economic landscape. But a deteriorating geopolitical situation is keeping a floor under prices. Coming against the backdrop, last week, of OPEC’s downward revision of demand, IEA’s Q4 cut in its demand outlook, further darkened the view.… Read more

December expiration on Friday, will shift the focus to the January contract today. Considerations at the front of the market display few positives. The only thing keeping the decline in check, are geopolitical concerns in and around the oil producing regions.… Read more

Since the break to new lows on Wednesday, prices have lingered close to 85.00 but that mark is looking increasingly difficult to maintain. It certainly should. Both the US and Europe are flailing around in attempts to deal with respective fiscal calamities, without any indication of substantive resolution.… Read more

Recessionary fears loomed large for investors in all classes yesterday as they parsed election results that changed little, other than the bringing the US a day closer to having to deal with major fiscal policy issues. Inventory data, showing increases in crude and refined products last week after massive disruptions caused by Hurricane Sandy, added to bearish sentiment.… Read more