Morning Market Overview
In the pre-inventory report release cycle oil prices were under pressure throughout the day on Tuesday with crude oil leading the way lower. Anticipation of another build in US crude oil inventories along with ongoing concerns over a slowing of the global economy and an increase in the US dollar versus most major currency pairs were the main downside drivers today.
Offsetting some of the negativity is the evolving sanction on Venezuela as more European countries support Mr. Guaido suggesting that they are likely to join the US in sanctioning Venezuela thus further reducing outlets for its oil. In the afternoon the API started the weekly inventory report cycle with a larger than expected build in crude oil, with a surprise build in distillate fuel inventories and a build in gasoline stocks within the market expectations.
Total combined inventories of crude oil and products were higher on the week. Overall the market held the pre-inventory report losses after the API inventory report release hit the media airwaves. On the financial front global equity markets were mostly higher around the world.
The EMI Index was higher by 0.68 percent for the day with the year to date gain at 9.5 percent.
All ten bourses in the Index are in positive territory for 2019 with Japan holding the worst performing spot in the Index with Brazil in the top spot with a 12.2 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 higher for the day with the Yen/USD and the Euro/USD lower. Overall the currency markets were a negative price driver for the oil complex.