Quote of the Day
If you don't like something change it; if you can't change it, change the way you think about it.
Oil prices (NYMEX:CLH14) are mixed in early morning trading after strong across the board gains on Tuesday. Last night’s API oil inventory report showed builds in crude oil and gasoline with distillate fuel declining on the back of a cold weather reporting week. Today the EIA will release its weekly oil inventory report while the U.S. Fed FOMC meeting outcome will be announced early this afternoon.
The Brent/WTI spread narrowed yesterday on news that the Keystone Gulf Coast pipeline pumping rate was up to 400,000 bpd according to Genscape. That said this morning the spread is back into a short term widening mode with the March spread hovering around the resistance/support area of $10.40/bbl… a trading level that has attracted trading activity for the last five sessions.
Today the Fed will announce if they are continuing with the tapering program they announced last month or putting it temporarily on hold as the macroeconomic data over the last two to three weeks have been disappointing, suggesting that the economic recovery in the U.S. as well as internationally may be starting to slow down once again. Last month when the Fed announced its tapering program of QE3 they said it would be data driven and so far the data does not support further tapering of bond purchase in the short term.