Category: The Energy OverView

There was little in the underlying fundamentals to suggest Friday’s move. Negativity continues to emanate from the slowing of the global economy, while markets bulls continue to worry about geopolitical risk. China reported GDP as expected, while investments, industrial production and retail sales) beat previous months…

Crude oil stayed mired in its very tight trading pattern, as participants struggled to find a rationale for a breakout. Tension in and around the oil producing regions continues to emanate from Syria/Turkey and Iran/Israel. Economic data continues mixed, with every positive element following by more disappointment.… Read more

December crude oil remained stuck in consolidation. The weekly EIA stockpile report helped to push prices lower initially as an extraordinary build in crude oil supplies confirmed the previous night’s API assessment. However, consideration of the higher than expected contraction in distillates may have been taken as a harbinger of renewed demand for that refined product and prices rallied afterwards.… Read more

December NYMEX WTI traded in an extraordinarily narrow range yesterday, with prices holding in the mid-92.00s. German monetary policymakers implied their stance towards their European counterparts was softening and Spain looks ready to ask for help, raising the single currency’s prospects while the US dollar loses some of its safe-haven appeal.… Read more

The most dramatic feature of yesterday’s price action was the reversal which recaptured the $2.00 lost earlier in the session. Some of the schizophrenic activity may certainly be attributed to the Intercontinental Exchange’s conversion of cleared swaps to futures which created considerable confusion in the markets as the exchange sought to help customers avoid new capital and reporting requirements relative to Dodd-Frank.… Read more

Signs of slowing economic growth in China add to ongoing worries about sluggish activity in the US and Europe. Nevertheless, oil prices continue to creep higher. The clearest assumption is that tensions in or close to producing regions must be adding to fears of a potential supply disruption of some sort.… Read more

After breaking to as high as 93.66 on Wednesday, prices have moves back towards 92.00. A larger than expected rise in crude oil stockpiles was tempered by a sharp draw to distillate supplies, a harbinger of possible rising demand for the feedstock ahead of heating season.… Read more

NYMEX November WTI posted a new high off last Wednesday;s low, but retreated over $1.00 by settlement. Price action keep fluctuating as focus shifts between economic data and geopolitical events. Tensions in or close to oil producing regions are rising with escalation of martial clashes between Syria and Turkey adding to existing strife over Iran’s nuclear ambitions.… Read more

Crude oil prices surged above the upper-end of the recent $88-92 range, yesterday, as geopolitical tensions seemed to dominate sentiment. The market awoke to the implications surrounding Turkey’s potential involvement in the conflict in Syria. The oil supply from Northern Iraq, which transits through Turkey to Ceyhan is the new worry.… Read more

The balance between economics and geopolitics held in a narrow-range, low volume session yesterday. So far today, similar conditions appear to be dominating, illustrated by price action described by the 88.00-92.00 trading range. Ms. Merkel is about to arrive in Greece for talks with policymakers there.… Read more