Market Report & Analysis for 7/12/2018 Morning Edition
Morning Market Overview
Heading into the start of the weekly oil inventory report cycle oil prices were able to stay in the positive territory including WTI which has been under pressure with the news that Canadian Syncrude will be starting to flow as early as the end of July. On the support side the market the loss of Libyan crude oil, as well as the evolving strike by Norwegian oil workers resulting in a shutdown of one offshore rig, nudged prices higher. Offsetting some of the bullishness was talks that the US may issue some waivers on the Iranian sanctions.
President Trump is on his way to Europe for a NATO meeting and a meeting with Putin. As we mentioned yesterday there will be several news snippets/tweets hitting the media airwaves during the rest of the week that could have an impact on oil price direction. In the afternoon the API started the weekly inventory report cycle with a mixed report with a larger than expected draw in crude oil and a slightly larger than expected draw in gasoline stocks with a larger than expected build in distillate fuel stocks.
Total combined inventories of crude oil and products were lower on the week. Overall the market added to the day’s price gains since the report was issued. On the financial front global equity markets were mostly higher. The level of uncertainty still remains at an elevated level. The EMI Index was higher with gains in seven of the ten bourses in the Index.
The EMI Index was higher by 0.11 percent on the day with the year to date loss at 1.6 percent. Five of the ten bourses in the Index are now in positive territory for 2018 with China still in the worst performing spot in the Index with Australia in the top spot with a 4.6 percent gain for the year. The positive value direction in global equity markets was a positive price driver for the oil complex.