Morning Market Overview

Oil prices were under pressure throughout the trading day as equities were sold off in most of the global equity markets while the US Dollar Index was lower on the session. Oil fundamentals were little changed Monday with the early round of inventory projections hitting the media airwaves. Most market participants are looking for a modest build in crude oil stocks with offsetting draws in refined product inventories.

On the external front US equities (as well as most global markets) were hit with a strong round of selling resulting in downside pressure on oil prices. On the other hand, the US dollar index was lower offsetting what could have been a much stronger round of selling in the oil pits. By the end of the day, oil prices settled well above their intraday lows but still lower for the session.

On the financial front global equity markets were mostly lower around the world with the US markets strongly lower. The US complex was lower throughout the trading session.

The EMI Index decreased by 0.90 percent with the year to date gain now at 2.7 percent. Two of the ten bourses in the Index are still in positive territory for 2018. London is in the worst performing spot in the Index with Brazil in the top spot with a 9.9 percent gain for the year. The lower value direction in global equity markets is a negative 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.