Gasoline in New York rallied following a reported outage at Irving Oil Corp.’s Saint John, New Brunswick, refinery, which exports about half of its production to the Northeast market. Futures have jumped 7.9 percent since Sept. 12.
OPEC is feeling the pain of lower prices and Saudi Arabia has already reduced production yet it seems that with demand faltering and the dollar rising prices look to continue lower. ... the fear is that if the cartel does cut it may only succeed in losing market share.
The International Energy Agency joined OPEC and the Energy Information Administration in lowering expectations for global demand. The IEA lowered their demand forecast for the third month in a row lowering global oil demand growth to 900,000 barrels per day in 2014.
Commodities across the board are finding it harder to try to establish support as currencies in Europe continue to get crushed. Not only has the euro, which has been hit by the ECB's quantitative easing but the British pound Sterling that has been rattled with the possibility of Scottish independence.
The star player today may indeed be European Central Bank chief Mario Draghi as he has teased the market about moving to a form of Quantitative Easing yet few believe that he will actually go there today.