Category: The Energy OverView

Directional wagers in all financial markets seem to be captive to a counter-intuitive thought process that is based on whether or not central bank stimulative action is forthcoming. While this is more evident in other markets, oil has not been immune to this upending of fundamental analysis.… Read more

NYMEX October WTI reached session highs early on, supported by upbeat US economic data and more details of an ECB bond buying program. EIA crude stocks slipped by a larger than expected 7.426MM bbls last week, their lowest level in five months, but the hefty draw was attributed to supply disruptions in the wake of Hurricane Isaac.… Read more

October WTI tested the lower end of the current range late last week, and earlier this week. In overnight trading though, prices have approached the highs again, propelled by last night’s API report and rising expectations for central bank action to spark the stuttering global economy.… Read more

The will there/won’t there be stimulus dance continues the counter-intuitive thinking among market participants. Federal Reserve Chairman Ben Bernanke stopped short of signaling extra monetary easing was imminent during his much anticipated speech in Jackson Hole, Wyoming, last week, but kept the door open for action if needed, and hopes for ECB bond buying had been raised on Monday after ECB President Draghi…

So far, it does not appear that “Isaac” has left much energy infrastructure damage in its wake. However it will take a few days to assess, as a considerable portion of Gulf output remains shut-in. Meanwhile, late week focus will fall on the Jackson Hole Symposium as market participants await Fed Chairman Bernanke’s address Friday morning for hints of policy direction.… Read more

Misinterpretations of IEA commentary and a bearish API report have weighed on prices, at least for today’s session, so far. Late yesterday, G-7 finance ministers called on the IEA to take appropriate action to ensure the market was fully supplied. and that they remain vigilant toward risks to the global economy posed by elevated oil prices.… Read more

Initial price action on last night’s lower Asian opening appeared to trump “Isaac”, and demonstrated oil’s vulnerability to the emerging weak global economic conditions. Japan cut its forecasts for the economy citing the global slowdown which will affect its exports as a consequence of deceleration in the United States and China, as well as Europe’s ongoing debt conundrum.… Read more

gap of .33 cents was registered on last’s night’s Asian opening, as TS Issac, looks set to head into the producing regions of the Gulf of Mexico, after it reaches hurricane intensity today. The spectacular pictures of and tragic story of Venezuela’s Amuay refinery has also served to bolster prices, especially gasoline, which spiked as much as 10 cents per gallon higher in overnight trading.… Read more

October NYMEX WTI posted the largest decline in some time yesterday, retreating from a key technical level. The elements that drove prices $20.00 higher over the last few months are still in place, but commentary emanating from various meetings around the continent between European policymakers, showed continued fecklessness towards a solution to their monetary conundrum.… Read more

The beat goes on. October NYMEX crude oil debuted as front month, posting another fresh high for the move off the late-June lows, already this morning at 98.29. The familiar rationale of expectation of stimulative activity has been at work on market participants again.… Read more