Category: The Energy OverView

Crude oil keeps posting fresh highs for the move off the June lows. Last night’s API report, showing a significant draw down of stockpiles should have caused the rally to extend, but prices could only manage to move slightly above 97.00 all night.… Read more

Morning reportage is pointing to the usual suspects in pushing oil prices to levels not seen since last May. North Sea maintenance, rising Middle East rancor, comments from European policymakers and dollar weakness. So, in an environment of expectations for rising demand and increasing threats to supply, why are prices not even higher?… Read more

Market participants appear to be unfazed by threats to release strategic reserves. The rise in prices looks to be more influenced by potential threats to supply, both from North Sea maintenance problems or geopolitics as Syria disintegrates and rhetoric on Iran’s nuclear intransigence escalates.… Read more

Rising tension in the Middle East, declining US crude stockpiles and expectations for lower North Sea oil output lent support to both Brent and WTI yesterday, pushing Brent’s premium to WTI to the highest level since last October. Equally supportive were more hints from the ECB President of some action in which participants might invest hopes for improved energy demand growth.… Read more

Price action continues to repeat while participants await fresh data. The counter-intuitive interpretation of data remains dominant as a harbinger of stimulus. Thus, better than expected German GDP data and a better than forecast read on US Retail Sales provided only limited support from the favorable macroeconomic tone.… Read more

Oil prices stayed within the recent consolidation near highs posted since the late June lows. Brent was the star performer based on the maintenance constrained North Sea output and rising geopolitical threats, as the debate in Israel intensifies about striking Iran’s disputed nuclear program.… Read more

The old saw about “Greeks bearing gifts” may rebound to the bulls disadvantage. A report this morning of “only” a 6.2% GDP contraction, can hardly be interpreted as a harbinger of better time for the long-suffering peripheral. While this may provide temporary relief in the form of more aid from their creditors, it can only add weight to the argument that austerity is working leading to further cut in salaries…

Front month NYMEX crude oil prices continue to languish just under recent highs. Disappointing Chinese, German and French data overnight have led to more length being shed. In addition, the IEA’s diminished outlook for oil demand, adding to the EIA and OPEC reports earlier in the week, is also adding to the overnight selling pressure.… Read more

Prices failed at session highs, reached on a bullish EIA report suggesting that recent upside momentum had temporarily run its course. The structure of price action was an expression of the counter-intuitive though process that participants have embraced. Bad news is good news because it implies more stimulative monetary policy, and consequently, improved demand.… Read more

September crude oil prices moved briskly above the previous high at 93.25, finally reaching 94.42 before fading almost a dollar before settling at 93.67. Early support for the market came from hopes for more stimulative monetary policy which also contributed to significant gains in global equity markets and weakness in the US dollar to a new four week low.… Read more