Morning Market Overview

As of this writing crude and refined product prices are modestly lower after they continued to trek higher Thursday. The spot WTI contract is now higher for the 16th day out of the last 19 trading sessions. Over that timeframe the spot WTI contract has risen around $8/bbl or 14 percent. On an intraday basis yesterday, Brent hit $70/bbl. The last time the spot Brent contract traded at $70/bbl was in December of 2014.

The main catalyst for the latest move higher is a growing view that the global oil market is returning to normal supply and demand balances with inventories well on their way to returning to the historical normal or 5-year average. An expanding global economy is contributing to an above expected growth in oil consumption. With OPEC still cutting production and Venezuelan production in decline the growth of US production is easily being absorbed with crude oil inventories still in a destocking pattern. On the financial front global equity markets were mostly higher. The Index increased with the US markets in positive territory throughout the US trading session.

The EMI Index increased by 0.41 percent with the year to date gain now at 3.1 percent. All ten bourses in the Index are now in positive territory for 2018. Canada is in the worst performing spot in the Index with Japan in the top spot with a 4.2 percent gain for the year. \The higher value direction in global equity markets were 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 today.