Global equity markets have been under intense selling pressure all week as shown in the EMI Global Equity Index table below. The EMI Index is now lower by 2.8% for the week resulting in the year to date loss of the Index widening to 2.7%. The Index is now back to the level it was at in mid- May. Six of the ten bourses in the Index are now in negative territory for the year. Germany remains on top of the leader board as this export oriented country continues to enjoy the benefits of the falling euro from the perspective of making its exports even more competitive. The rest of the European bourses are all in negative territory for the year. The global equity markets are a negative price driver for oil and the broader commodity complex.
The API report showed a surprise build in crude oil stocks and larger than expected builds in both distillate fuel and gasoline stocks. The API reported a build (of about 1.3 million barrels) in crude oil stocks versus an expectation for a modest decline as crude oil imports increased and even as refinery run rates increased strongly by 1.9%. The API reported a strong build in distillate stocks. They also reported a large build in gasoline stocks versus an expectation for a smaller build in gasoline inventories.