Markets

Morning Crude Oil Market Report

At least to start today the energy complex is on a weaker footing. In fact, given the evidence of slowing in the US economy this week and the evidence of slowing in the Euro zone overnight, the overall demand outlook for energies is somewhat suspect. The crude oil market could garner some support from news of slightly reduced supply flows from the North Sea, due to loading issues, but it could take more than minor supply side threats to throw off this week's partially negative chart bias. The market might also garner some fleeting support from ongoing tensions in Yemen, but more than likely the main focus of the oil market today will be where forward demand is headed. The threat of slowing is clearly present in the marketplace this week, as some Non farm payroll estimates have been pulled down just ahead of the release this morning. With EIA crude stocks yesterday rising 2.878 million barrels and sitting at 10.562 million barrels above year ago levels, there isn't much room for expanding concern over future demand. In fact, crude stocks also stand 28.812 million barrels above the five year average. Crude oil imports for the week stood at 9.518 million barrels per day compared to 9.232 million barrels the previous week. The refinery operating rate was 86.00% down, 0.30% from last week compared to 87.50% last year and the five year average of 88.82% which could eventually provide some support to product prices ahead. In the action today, crude oil prices might have to prove they can avoid a slide to new lows for the week. The bull camp might suggest that crude oil prices below $100 have already factored in some measure of slowing.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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