Daily Oil Fundamentals

Markets and Investors are Backfooted

05 Sep 2024

Markets and Investors are Backfooted

There is a pause of breath and light reprieve for oil prices this morning caused in the main by a greater draw of stock in the US API data than anticipated. Crude drew 7.4mb barrels against a -1mb expectation, Gasoline -0.3mb and Distillate -0.4mb with both products forecasted to have mild builds. If matched by the EIA Inventory Report later, the Crude draw will be the largest for 2-months, but as the two publications have not exactly chimed in agreement of late, the market will have to wait for such confirmation.

Daily Oil Fundamentals

Seemingly Grim Outlook on Supply as well as Demand

04 Sep 2024

Seemingly Grim Outlook on Supply as well as Demand

This is a market, which is reluctant to react to bullish news but happy to jump on the bandwagon when the status quo is re-established. There was no price support forthcoming last week when Libya was forced to shut production down and severely restrict exports, yet the agreement to appoint a central bank governor was greeted with a massive sell-off, which sent the price of Brent to its lowest level this year and RBOB close to the trough of 2021.

Daily Oil Fundamentals

China Serves Oil Prices Poorly as the Market Gaze Ponders US Data

03 Sep 2024

China Serves Oil Prices Poorly as the Market Gaze Ponders US Data

China has yet again sent a shiver through oil market thinking that not even another force majeure in Libya will warm. The declaration on the El-Feel oil field actually gives breathing space for OPEC+ as it appears, in most opinion, to be on the path of bringing shuttered oil back to the market.