Morning Market Overview
Oil prices drifted lower Thursday but remain in the uptrend that has been in play since December 24. The supply cut narrative continues to be the main driver for oil prices. The oil complex received some support from the strong rally in US equites but offset somewhat by the increase in the US dollar versus most currency pairs.
Not much new on the day with the main cloud still overhanging the complex… the uncertainty as to the outcome of US-China trade negotiations.
On the financial front global equity markets were mixed around the world (but strongly higher in the US) resulting in the overall EMI Index moving lower for the day.
The EMI Index was lower by 0.63 percent for the day with the year to date gain at 11.4 percent. All ten bourses in the Index are in positive territory for 2019 with Japan in the worst performing spot in the Index with China in the top spot with a 24.4 percent gain for the year.
The lower value direction in global equity markets was a negative 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.