Morning Market Overview
Despite a bearish overall weekly EIA inventory snapshot prices increased strongly across the board Wednesday. Positive comments hitting the media airwaves on the status of US/China trade talks was a major upside price catalyst.
Further support came from Saudi Arabia’s Energy Minister indicating that he was confident the output cuts will move global supply and demand back into a balanced position. Global equity markets were higher around the world also adding support to the oil complex as well as support coming from the declining US dollar. Yesterday could be categorized as a risk on day for both equities and commodities including the oil complex. On the financial front, global equity markets were higher around the world.
The EMI Index was higher by 0.81 percent for the day with the year to date gain at 4.7 percent. All ten bourses in the Index are in positive territory for 2019 with Paris holding the worst performing spot in the Index with Brazil in the top spot with a 7.7 percent gain for the year. The higher value direction in global equity markets today was a positive price driver for the oil complex.
On the currency front, the US dollar Index was lower for the day with the Yen/USD and the Euro/USD higher. Overall the currency markets were a positive price driver for the oil complex.