Market Report & Analysis for 1/18/2019 Morning Edition
Morning Market Overview
The market is softer this morning as it continues to digest the weekly fundamentals. Oil prices were able to add to Tuesday’s gains on Wednesday despite a bearish overall weekly inventory snapshot released by the EIA.
Total combined stocks of crude oil and refined products increased for the third week in a row even as OPEC and its non-OPEC producer partners have been steadily decreasing production since the last OPEC meeting.
On the global economy, China’s central bank increased cash injections as the government continues to increase efforts to bolster the economy and prevent a significant slowdown across 2019. Also, UK Prime Minster May narrowly survived a no-confidence vote after a defeat on Tuesday of the latest BREXIT plan. On the financial front global equity markets were mixed around the world.
The EMI Index was slightly lower by 0.10 percent for the day with the year to date gain at 6.3 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 10.1 percent gain for the year. The slightly lower value direction in global equity markets today was a neutral price driver for the oil complex.
On the currency front, the US dollar Index was higher for the day with the Yen/USD and the Euro/USD lower. Overall the currency markets were negative price driver for the oil complex.
