Technical & Fundamental Oil Reports Specialists

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ECB hoping the Fed will go first

Published Wednesday, November 4th, 2015

Crude oil prices moved higher yesterday as a result of supply disruptions in Brazil and Libya. The strike in Brazil has cut production by 273,000 bpd and a force majeure on Zueitina is worth around 100,000 bpd. In the big picture these are micro disruptions producing no more than front end noise taking Brent to a close of +$1.75/bbl (50.54) and WTI +$1.76/bbl (47.90).

Support also came from Colonial pipeline problems which took Heat to +5.91cts/gal and RBOB +7.02cts/gal. The API figures released after the close showed a US weekly crude build of 2.8 million bbls, in line with expectations. Cushing drew 500,000 bbls.

The crude rally gave energy stocks a boost leading to positive stock market closes across the board. The days when central bankers were seen and not heard are long gone. These bastions of monetary stability have become bastions of uncertainty and their members clearly revel in their celebrity. Efforts to communicate and be transparent have increased rather than decreased uncertainty because monetary committee member opinion and guidance are inconsistent.

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Posted by David Hufton