Market Report & Analysis for 7/20/2018 Morning Edition

Morning Market Overview

Oil prices were whipsawed Wednesday after the EIA reported a strong increase in total US crude oil stocks as well as an increase in total combined stocks of crude oil and refined products. Overall the weekly EIA inventory snapshot was biased to the bearish side today.

The immediate market reaction was to sell and push prices lower but by the afternoon prices reversed course in a round of short covering. Prices have fallen strongly over the last week with the market already trading in oversold territory. On the financial front global equity markets were mixed. The level of uncertainty remains at an elevated level. The EMI Index was higher for six of the ten bourses in the Index.

The EMI Index decreased by 0.24 percent on the day with the year to date gain at 0.1 percent. Five of the ten bourses in the Index are now in positive territory for 2018 with China still in the worst performing spot in the Index with Australia in the top spot with a 4.4 percent gain for the year. The negative value direction in global equity markets was a negative price driver for the oil complex.

On the currency front the US dollar Index is higher on the day with the Yen/USD and the Euro/USD lower. Overall the currency markets were a negative price driver for the oil complex.