Wednesday, February 1, 2023
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home Commodities

The Commodities Feed: Oil marches higher | Snap

MtR by MtR
June 16, 2021
in Commodities
0
The Commodities Feed: Oil marches higher | Snap


Energy

While large parts of the commodities complex came under pressure yesterday, oil bucked the trend and continued its move higher. ICE Brent broke above US$74/bbl, and traded to levels last seen back in April 2019. Sentiment is likely to remain positive today, with the API reporting overnight that US crude oil inventories fell by 8.54MMbbls over the last week, much more than the roughly 2.5MMbbls decline the market was expecting. If the EIA reports a similar fall in inventories later today, it would be the largest decline since January.

The strength in oil has been led by the US, with the WTI/Brent discount quickly closing in on US$2/bbl, having traded a little over US$4/bbl in April. Refinery runs in the US have picked up considerably, back to levels last seen in January 2020, while crude oil output continues to hover around the 11MMbbls/d mark. These factors combined with lower imports (due to ongoing OPEC+ supply cuts) have helped to tighten up the US crude oil balance The narrowing in the WTI/Brent spread suggests that we should see US crude oil exports trending lower.

While the recent move higher in the oil market has been driven by optimism over the demand outlook, refinery cracks suggest that the rally in crude oil may be getting a bit ahead of itself. If the demand story was as optimistic as the move in crude oil suggests, you would think that the move higher in prices would have been led by the refined product market. However, in the US, both gasoline and heating oil cracks have come under pressure recently. We would have more confidence in this oil rally if these product cracks moved higher with oil prices.

If this strength is sustained until early next month, it only increases the likelihood that OPEC+ agree on some aggressive production increases when they meet on 1 July. With ICE Brent not too far away from the mid-$70s, it will become increasingly difficult for OPEC+ to continue to hold a sizeable amount of supply from the market. After the last OPEC+ meeting, Russian oil producers made it pretty clear that they expect the group to increase output further from August. Even after taking into consideration the 2.1MMbbls/d supply increase between May and July, OPEC+ still have almost 6MMbbls/d of supply to bring back to the market, which should more than offset the expected demand recovery in the months ahead.



Source link

Related articles

Record outflows from commodity ETPs obscure long-term demand

August 10, 2022

Pacific Trader: B2Gold bucks the commodity slump

August 9, 2022

Related Posts

Record outflows from commodity ETPs obscure long-term demand

by MtR
August 10, 2022
0

Latest news on ETFsVisit our ETF Hub to find out more and to explore our in-depth data and comparison toolsInvestors...

Pacific Trader: B2Gold bucks the commodity slump

by MtR
August 9, 2022
0

Credit: B2Gold Corp. Hauling ore at B2Gold's Otjikoto Mine in Namibia And unlike its peers, the Vancouver company pays a...

Ford raises prices of electric F-150 pickup amid high commodity costs

by MtR
August 9, 2022
0

The all-electric Ford F-150 Lightning pickup truck is unveiled at the company's world headquarters in Dearborn, Michigan, U.S., May 19,...

Commodity Market: Gold price surge marginally

by MtR
August 9, 2022
0

Mumbai: Price of gold edged higher marginally in the commodity market. Sovereign gold is trading at Rs 38,240, higher by...

Japan Hands over Emergency Medicines and Commodities for Pregnant Women and Adolescent Girls though the Project “PROMISES” under the partnership with UNFPA – Sri Lanka

by MtR
August 9, 2022
0

On 8 August, Ambassador of Japan to Sri Lanka, H. E. Mr. MIZUKOSHI Hideaki handed over essential pharmaceuticals for women...

Load More
  • Trending
  • Comments
  • Latest

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021

Tips for checking smoke alarms during daylight saving time

March 12, 2022

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021

What will Durham County education bonds pay for? A full list

July 8, 2022
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022

Alberta oil production set new record in first half of 2022

August 10, 2022

Industrial Lubricants Market to Reach $71 Billion by 2027.

August 10, 2022

Recent News

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022

Alberta oil production set new record in first half of 2022

August 10, 2022

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter