Most markets remain at an elevated level of volatility with wide intraday price swings on relatively little new information. Wednesday oil prices started out modestly lower on the back of Tuesday’s strong decline, but the complex was able to claw its way back into positive territory (except for RBOB gasoline) even with an overall bearish inventory snapshot. All the main drivers resulted in a mixed picture for oil.

The externals were mixed although early in the day they were both negative (lower US equities and higher USD Index) but US equities turned higher late in the day but then gave back a portion of the afternoon gains prior to the close while the USD remained in positive territory.

The weekly EIA oil snapshot was bearish as total combined stocks of crude oil and refined products increased on the week versus most analysts projecting another decrease in stocks. On the day an uncertain set of signals and thus another session with wide trading ranges and intraday reversals. On the financial front global equity markets were mixed on Wednesday. The EMI Index ended the trading day lower as the late day recovery in US equities faded away by the close. The EMI Index decreased 0.49 percent on the day with the year to date gain at 2.9 percent. Three of the ten bourses in the Index remain in positive territory for 2018 with China still holding the worst performing spot in the Index with Brazil in the top spot with an 11.1 percent gain for the year.

The overall decrease in the Index in US equities was a negative price driver for the oil complex. On the currency front the US dollar Index traded 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.