Afternoon Market Overview

—> The staff of the Energy Management Institute would like to wish all our subscribers and their families a very happy and healthy holiday season. This is the last market overview update for 2017. Market coverage and analysis will restart Jan 2. <—

Oil prices ended the trading session Thursday on the positive side of the ledger even after Ineos the operator of the North Sea Forties Pipeline announced they expect the line to be fully operational in early January. The line is expected to gradually increase to normal rates after the line is repaired over the next week or so.

The market did not overreact to the loss of the pipeline flow with prices only rising mildly when it was first announced. Now the market is not overreacting to the announcement that the line should be back in operation in the next few weeks. Market participants seem more focused on data points that will have a lasting impact on global supply and demand balances rather than short term surprise events.

Over the coming week liquidity will be below normal as many traders and market participants remain out of the market during the long holiday period. Moving beyond next week the market will remain focused on all data points regarding the evolving OPEC production cut accord and the impact it is having on the global overhang in oil inventories.

On the financial front global equity markets were higher after another increase in US GDP as well as carryover positives from the massive US tax cut. The Index increased with the US markets in positive territory throughout the US trading session. The EMI Index increased by 0.84 percent with the year to date gain hovering around 20.6 percent and at a new the year to date high. All ten bourses in the Index remain in positive territory for 2017.

Canada is now in the worst performing spot in the Index with Hong Kong still in the top spot with a 33.5 percent gain for the year. The higher value direction in global equity markets today was a positive price driver for the oil complex.