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Greek lawmakers expected to vote and rebel again

Published Wednesday, July 22nd, 2015

Lack of fresh developments, bullish in the stock markets and bearish in oil, triggered some corrections where the DJIA index fell 1%, the S&P 500 0.43% and the FTSE Eurofirst 300 1.09%. Stock markets and the common currency will be influenced by the vote of a second set of austerity reforms in the Greek parliament later today. Oil was partially supported by the rise in the euro which gained 1% with further support coming from Saudi Arabia. The Kingdom is clearly concerned about the Iranian nuclear deal struck early last week and said that it is considering its own nuclear options. As a result WTI and Brent gained 42 cents/bbl and 39 cents/bbl respectively. Heating Oil added 2 cents/gallon as RBOB reversed course for the day. After three consecutive days of stronger closes this contract settled 94 points lower on the day.

Today’s price action in the oil market will be mainly determined by the weekly EIA statistics on US oil inventories. This morning some kind of bearish order has been restored as the API reported a 2.3 million bbl build in crude oil inventories whilst analysts surveyed by Reuters are expecting a draw of the same magnitude. Cushing stocks increased by 885,000 bbls. Product data is hard to come by from the API but it is worth keeping in mind for this afternoon that distillate stocks are forecast to rise by 1.8 million bbls and gasoline inventories by 900,000 bbls.

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Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.