Technical & Fundamental Oil Reports Specialists

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Complacency or confidence?

Published Thursday, May 29th, 2014

Another slew of disappointing Eurozone data released yesterday reinforced conviction that the ECB must and will act next week to deal with the threat of deflation, unemployment, slow growth, falling money supply and low levels of business lending and investment. Just about every financial ailment you can think of is somewhere to be found in the Eurozone.

Stock and bond markets are positioning themselves accordingly. The oil market pushed higher to $110.40/bbl on Brent and $104.39/bbl on WTI but closing prices were down on the day at $109.81/bbl (-21) and $102.72 (-139). Weak refining margins in North West Europe have been pressurising the price of Forties which Platts assessed last night at Dated Brent -85cts/bbl which is the steepest discount since April 2012 according the Reuters data.

Jetty repairs at Hound Point mean that VLCCs cannot load removing the Forties safety valve of shipments to Asia. After the close the API weekly stock figures showed a crude build of 3.5 million bbls, a distillate build of 820,000 bbls and a gasoline draw of 1.4 million bbls. Cushing drew 1.5 million bbls and refinery runs were unchanged at 90.3%

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Posted by David Hufton