Author: Scott A Croom

Market Report & Analysis for 2/19/18 Afternoon Edition

Afternoon Market Overview A modicum of strength has emerged in afternoon trade this Friday. The market has been fickle today so it is yet to be seen if the gains hold. Most of the fundamental data points released over the last three weeks have been bearish except for this week’s EIA inventory snapshot which showed a modest decline in total combined crude oil and refined product inventories. Of interest the Brent/WTI spread continues to narrow declining another $0.72/bbl today to around $3.15/bbl or almost half of where it was in early January. This spread is an indication of the...

Read More

Market Report & Analysis for 2/16/2018 Morning Edition

Morning Market Overview Oil prices shrugged off a negative start to the trading session Wednesday and ended the day strongly higher. A combination of a slightly supportive weekly EIA oil inventory snapshot along with a falling US dollar and rising equity values were the main catalysts to push prices higher. Oil prices have been under pressure since hitting a peak at the end of January. The decline accelerated after a sell-off in equities coupled with several bearish fundamental data points. Wednesday’s push higher is just one day’s trading and does not necessarily mean that the decline is over. The...

Read More

Market Report & Analysis for 2/15/2018 Morning Edition

Morning Market Overview In the pre-inventory report release oil prices put in a mixed trading session with all the oil commodities trading either side of unchanged except for RBOB gasoline which increased by close to 1 percent on the day. The International Energy Agency (IEA) released their monthly oil forecast which was overall bearish as was the OPEC and EIA monthly oil forecast. Market participants are starting to refocus their attention back to the fundamental snapshots and less on the externals. Tuesday the US dollar index declined modestly while equities were higher both positive price drivers for the oil...

Read More

Market Report & Analysis for 2/14/18 Afternoon Edition

Afternoon Market Overview OPEC has released their February oil projection report. Following are the main highlights from the OPEC report. The global GDP growth forecast was revised up by 0.1 percentage points to 3.8% for both 2017 and 2018, mainly supported by advanced economies. World oil demand growth in 2017 is estimated to increase by 1.60 mb/d, representing an upward adjustment of some 30 tb/d compared to last month’s projections, mainly to reflect the continuing better-than-expected data in OECD Europe in 3Q17. Total world oil demand stood at 97.01 mb/d in 2017. In 2018, world oil demand is foreseen...

Read More

Market Report & Analysis for 2/14/18 Afternoon Edition

Afternoon Market Overview Crude oil prices ended Monday slightly higher on a combination of a recovery in equity values as well as a decline in the US dollar. Refined product prices remained under pressure suggesting that the recovery in oil prices was mostly driven by the externals (equity and US dollar) rather than any fundamental support. In fact, this morning OPEC released their oil forecast which was slightly biased to the bearish side as they indicated that oil demand will grow in 2018 but non-OPEC supply will also be growing modestly. Oil prices are still struggling after last week’s...

Read More