Beyond The Breakers Trading

The most popular topic across financial market headlines is the relentless appreciation witnessed in global oil prices after OPEC and Russia squarely rejected Donald Trump’s demand to boost output over the past weekend.

Brent Crude has soared to levels not seen since November 2014 when it was above $82.00. Looming US sanctions against Iran coupled with a drop in Venezuela’s output could accelerate the tightening of oil markets at a time where OPEC + have ruled out any immediate increases in oil production. This is overall encouraging investors to price in as much good news as possible over the near-term.

I wouldn’t say the dust is completely clear for potential buyers to send prices back towards $100. The medium-term outlook could still be subject to demand-side fears revolving around what potential impact ongoing trade tensions could have on the global economy down the road. If trade tensions around the globe do weigh on growth, demand for oil is likely to take a hit which inevitably risks translating to lower oil prices.

Today’s main event risk for the US economy and perhaps global markets as a whole will be the outcome to the Federal Reserve policy meeting which is widely expected to conclude with a 0.25% increase to US interest rates. With it already being considered a foregone conclusion that interest rates will be raised today, investors will direct their attention towards the economic projections and dot plot projections for clues on potential rate hike timings for next year.

The Dollar has the potential to appreciate if the Federal Reserve expresses optimism over the US economy, shows little concerns about growing tensions and provides fresh insight into rate hike timings beyond December. This would ultimately lead to a risk of weighing down the Dollar’s global counterparts, and would threaten further selling to emerging markets.

Source: FXTM

West Texas Intermediate oil extended gains in North American trade on Wednesday, after weekly data showed that oil supplies in the U.S. registered a larger-than-expected draw.

Crude oil for October delivery on the New York Mercantile Exchange rose 91 cents, or 1.33%, to trade at $69.44 a barrel by 10:33 AM ET (14:33 GMT) compared to $69.06 ahead of the report.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 2.566 million barrels in the week ended August 24.

Market analysts‘ had expected a crude-stock draw of 0.686 million barrels, while the American Petroleum Institute late Tuesday reported a supply increase of 0.038 million barrels.

Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, increased by 0.058 million barrels last week, the EIA said.

Total U.S. crude oil inventories stood at 405.8 million barrels as of last week, according to a press release, which the EIA indicated was “at the five year average for this time of year”.

The report also showed that gasoline inventories decreased by 1.554 million barrels, compared to expectations for a build of 0.370 million barrels, while distillate stockpiles dropped 0.837 million barrels, compared to forecasts for a gain of 1.592 million.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery traded up 61 cents, or 0.80%, to $76.90 by 10:36 AM ET (15:36 GMT), compared to $76.56 before the release.

Meanwhile, Brent’s premium to the WTI crude contract stood at $7.72 a barrel by 10:38 AM ET (15:38 GMT), compared to a gap of $7.76 by close of trade on Tuesday..

Source: investing.com

West Texas Intermediate oil pared gains in North American trade on Wednesday, after data showed that while oil supplies in the U.S. registered a much larger than expected draw, gasoline stockpiles unexpectedly increased and distillate inventories rose more than expected.

Crude oil for October delivery on the New York Mercantile Exchange rose $1.13, or 1.72%, to trade at $66.97 a barrel by 10:33 AM ET (15:33 GMT) compared to $67.27 ahead of the report.

The U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 5.836 million barrels in the week ended August 17. Market analysts’ had expected a crude-stock draw of 1.497 million barrels, while the American Petroleum Institute late Tuesday reported a supply decrease of 5.170 million barrels.

Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, increased by 0.772 million barrels last week, the EIA said. Total U.S. crude oil inventories stood at 408.4 million barrels as of last week, according to press release, which the EIA indicated was “at the five year average for this time of year”.

The report also showed that gasoline inventories increased by 1.2 million barrels, compared to expectations for a decline of 0.488 million barrels, while distillate stockpiles rose 1.849 million barrels, compared to forecasts for a gain of 1.463 million.

Source: investing

U.S. crude oil refinery inputs averaged 17.6 million barrels per day during the week ending August 3, 2018, which was 118,000 barrels per day more than the previous week’s average.

Refineries operated at 96.6% of their operable capacity last week. Gasoline production decreased last week, averaging 9.9 million barrels per day.

Distillate fuel production increased last week, averaging 5.2 million barrels per day.

U.S. crude oil imports averaged 7.9 million barrels per day last week, up by 182,000 barrels per day from the previous week.

Over the past four weeks, crude oil imports averaged about 8.1 million barrels per day, 1.4% more than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 935,000 barrels per day, and distillate fuel imports averaged 169,000 barrels per day.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 1.4 million barrels from the previous week. At 407.4 million barrels, U.S. crude oil inventories are about 1% below the five year average for this time of year. Total motor gasoline inventories increased by 2.9 million barrels last week and are about 4% above the five year average for this time of year.

Finished gasoline and blending components inventories both increased last week. Distillate fuel inventories increased by 1.2 million barrels last week and are about 10% below the five year average for this time of year.

Propane/propylene inventories increased by 0.1 million barrels last week and are about 13% below the five year average for this time of year. Total commercial petroleum inventories increased last week by 3.3 million barrels last week.

Total products supplied over the last four-week period averaged 21.1 million barrels per day, down by 0.6% from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 9.7 million barrels per day, down by 0.7% from the same period last year. Distillate fuel product supplied averaged 4.0 million barrels per day over the past four weeks, down by 8.3% from the same period last year. Jet fuel product supplied was up 2.3% compared with the same four-week period last year..

Source: EIA Reports

Oil prices continued to trade lower Wednesday after the Energy Information Administration reported that domestic crude supplies rose by 3.8 million barrels for the week ended July 27.

Analysts surveyed by S&P Global Platts had forecast a fall of 2.4 million barrels, while the American Petroleum Institute on Tuesday reported a rise of 5.6 million barrels, according to sources. Gasoline stockpiles declined by 2.5 million barrels for the week, while distillate stockpiles rose 3 million barrels, according to the EIA.

The S&P Global Platts survey forecast a supply decrease of 1.5 million barrels for gasoline, along with a climb of 560,000 barrels for distillate stocks. September crude CLU8, +2.20% fell by 99 cents, or 1.4%, to $67.75 a barrel on the New York Mercantile Exchange, little changed from $67.80 before the supply data.

Below are the key takeaways from the weekly report published by the U.S. Energy Information Administration.

• U.S. crude oil refinery inputs averaged 17.2 million barrels per day during the week ending July 13, 2018, which was 413,000 barrels per day less than the previous week’s average.
• U.S. crude oil imports averaged 9.1 million barrels per day last week, up by 1,635,000 barrels per day from the previous week. 
• U.S. commercial crude oil inventories increased by 5.8 million barrels from the previous week. 
• Total products supplied over the last four-week period averaged 20.7 million barrels per day, down by 0.3% from the same period last year.

U.S. oil prices pared much of their earlier losses Wednesday after the Energy Information Administration reported that domestic crude supplies plunged by 12.6 million barrels for the week ended July 6. Analysts surveyed by S&P Global Platts had forecast a fall of 4.8 million barrels, while the American Petroleum Institute on Tuesday reported a drop of 6.8 million barrels, according to sources.

Gasoline stockpiles fell by 700,000 barrels for the week, but distillate stockpiles jumped 4.1 million barrels higher for the week, according to the EIA.

The S&P Global Platts survey forecast a supply decrease of 1 million barrels for gasoline and a rise of 1.7 million barrels for distillate stocks.

August crude CLQ8, -0.67 fell 40 cents, or 0.5%, to $73.71 a barrel on the New York Mercantile Exchange, up from $73.27 before the supply data.

Below are the key takeaways from the weekly report published by the U.S. Energy Information Administration.

• U.S. crude oil refinery inputs averaged 17.7 million barrels per day during the week ending June 29, 2018, which was 163,000 barrels per day less than the previous week’s average. 
• U.S. crude oil imports averaged 9.1 million barrels per day last week, up by 699,000 barrels per day from the previous week.
• U.S. commercial crude oil inventories increased by 1.2 million barrels from the previous week.
• Total products supplied over the last four-week period averaged 20.9 million barrels per day, up by 1.4% from the same period last year. 

The U.S. Energy Information Administration reported Wednesday that crude supplies dropped by 5.9 million barrels for the week ended June 15.

Analysts surveyed by S&P Global Platts had forecast a fall of 3.7 million barrels, while the American Petroleum Institute on Tuesday reported a decline of 3 million barrels, according to sources. Gasoline stockpiles, however, rose by 3.3 million barrels for the week, while distillate stockpiles climbed by 2.7 million barrels, according to the EIA.

The S&P Global Platts survey forecast a supply fall of 1 million barrels for gasoline, and expected distillate stocks to be down by 700,000 barrels.

July crude CLN8, +1.91% rose 90 cents, or 1.4%, to $65.97 a barrel on the New York Mercantile Exchange, up from $65.81 before the supply data.