Morning Market Overview
Oil was hit with a round of profit taking selling on Friday after rising for nine days in a row. The complex broke out of the medium term downward sloping linear regression trading channel last week and did end the week 7.5 percent higher (crude oil).
Market participants have become more positive that OPEC and its partners will be successful in getting global supply and demand back into balance and moving inventories into a sustainable destocking pattern.
The above said there is still concern over the state of the global economy and whether it is moving toward a sustainable slow down and even a recession in some areas of the world. This is still a theory as the economic data although not as robust as in 2018 is still positive and clear signs of recession are not yet present.
Last week the latest Baker Hughes data hit the media airwaves reporting the number of rigs deployed to the US oil sector decreased by 4 rigs on the week after decreasing during the previous week. Total US crude oil production is about 23.2 percent above where it was for the same week a year ago. This week’s production came in at 11.7 million bpd.