The crue oil (NYMEX:CLV14) complex is in positive territory for the third day in a row and ahead of this morning’s EIA fundamental snapshot.
Yesterday afternoon’s API oil inventory report was supportive for crude oil and gasoline (NYMEX:RBV14) but bearish for distillate fuel (see below for more details). That said the overall global fundamentals remain biased to the bearish side while the geopolitical events around the world are still putting a macro floor in prices.
The spot WTI contract is hovering near its technical range resistance level as the industry is expecting the EIA to also show a draw in crude oil stocks after the surprise draw reported in the API report last evening. Even Cushing stocks increased less than the industry was expecting providing a modicum of support so far this morning.
Activity is picking up in the tropics with Hurricane Cristobal heading north into the Atlantic but not expected to make landfall anywhere in the United States. Insofar as oil and Nat Gas (NYMEX:NGV14) supply is concerned this hurricane is a non-event. In addition there are now two low probability events forming in the tropics. One event currently has little if any chance of strengthening over the next forty eight hours and is still about 900 miles east of the Lesser Antilles.