Market Report & Analysis for 8/16/2018 Morning Edition

Morning Market Overview

In the pre-inventory report cycle Tuesday the oil complex was mixed with RBOB trading with a modest gain on the day while the rest of the complex traded on the negative side of the ledger. The complex has been under downward pressure for the last month or so as the market is continuing to place more emphasis on the view that increased production will offset any further potential geopolitical loss.

Adding pressure to the oil complex in the session was a strong US dollar versus most major currencies pairs. However, it has been offset a tad by the increase in most global equity markets. The overall financial markets have been trading with a high level of uncertainty as the global trade disputes continue to rattle many market participants. On the financial front global equity markets were mixed.

The EMI Index was higher for six of the ten bourses in the Index. The EMI Index increased by 0.78 percent on the day with the year to date loss at 0.2 percent. Five of the ten bourses in the Index are still in positive territory for 2018 with China still in the worst performing spot in the Index with Australia in the top spot with a 5.3 percent gain for the year. The positive value direction in global equity markets was a positive 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.