Market Report & Analysis for 7/9/2018 Morning Edition

by | Jul 6, 2018 | EMI, Fuels & Markets, Industry News

Morning Market Overview

Oil put in a mixed post-holiday day of trading after a mostly bearish weekly inventory snapshot issued by the EIA. Crude oil was lower after a surprise build in stocks while refined products held the positive side of the ledger after a smaller than expected build in distillate fuel and a surprise draw in gasoline.

The report was overall bearish as total combined stocks of crude oil and refined products increased on the week and are now 25.9 million above the low hit earlier in the year. Aside from Thursday’s weekly oil inventory report, most other aspects of the oil complex were quiet. The externals were slightly positive with rising equities in the US and a lower US dollar versus most currency pairs. On the financial front global equity markets were mixed tariffs were front and center as well as Friday monthly US jobs report. The level of uncertainty remains at an elevated level.

The EMI Index was lower with gains in four of the ten bourses in the Index. The EMI Index was lower by 0.28 percent on the day with the year to date loss at 2.9 percent. Only three of the ten bourses in the Index are still in positive territory for 2018 with China still in the worst performing spot in the Index with Australia in the top spot with a 3.9 percent gain for the year. The negative value direction in global equity markets was a negative price driver for the oil complex.

On the currency front, the US dollar Index is lower on the day with the Yen/USD and the Euro/USD mixed. Overall the currency markets were a positive price driver for the oil complex.