Category: The Energy OverView

Brent crude oil was the tar of the complex, yesterday, on word that South Korea would resume subsidies for refiners to purchase crude from other than Middle East sources. The subsidies cover the additional transit costs from the farther flung production sources.… Read more

Crude oil prices are slightly lower this morning, after rallying back, yesterday. Production issues in the North Sea sparked the rally, but the latest problems appear fleeting. Oil prices also ignored the negative ISM Manufacturing reading, yesterday. While we believe prices are likely to fall, we seem to have an increasing amount of company, which is worrisome.… Read more

The weekly inventory surprised versus consensus, regarding the reported rise in crude oil stocks. Overall, crude oil inventories in the US are now at an all-time record. Prices sold off, initially, but then rebounded. Gasoline inventories showed a decline, and that enabled gasoline to exert some seasonal leadership and pulled prices back up across the complex.… Read more

Crude oil prices are falling further, building upon yesterday’s losses. The IMF and OECD cut their economic forecast for China’s growth rate, and oil prices took that news hard. We often refer to China as the swing-demand center much as Saudi Arabia is the world’s swing producer, being a price maker in terms of its supply activity.… Read more

Crude oil prices are under pressure from the IMF’s diminished outlook for China’s economy. China is the swing demand center, and the crude oil bulls have to worry most about China’s outlook. Still, prices remain elevated in relation to supply levels, and may now come under pressure from demand concerns.… Read more

Crude oil prices are back on the rise, nearing the $95 level for WTI. The improving economy and geopolitical concerns are helping to stoke the demand outlook. We have mentioned the looming summer demand from direct crude burns in Saudi Arabia and Japan.… Read more

Crude oil prices are falling on word out of the world’s swing demand center, China, that manufacturing activity is contracting. The HSBC flash manufacturing PMI hit the tape around 1:45AM New York time and showed a reading of 49.6 for May.… Read more

Crude oil prices fell, yesterday, and are lower still in overnight trading. The API inventory report showed a large crude oil and gasoline build that was in contradiction with estimates. The gasoline build was particularly impressive, and the recent rally there looks to be over.… Read more

Crude oil prices rose modestly, yesterday, but they are back down this morning. The push-pull of the dollar is having an effect. The dollar is back on the rise, due to comments from Japan’s economy minister and lower inflation emanating from the UK (more above).… Read more

Crude oil prices are down modestly this morning, taking a cue from a mild pullback in equities overnight. The equity rally is helping to offset the pressure from the rising dollar on crude oil prices. The crude market is in conflict over the improving economy and the consequent energy demand growth to be expected from such a phenomenon and the downward base currency pressures.… Read more