Oil prices rallied on a Reuters report yesterday saying that OPEC and its allies will consider whether to deepen cuts to crude supply when they next meet in December due to worries about weak demand growth in 2020.
U.S benchmarks started the week off on strong and the S&P extended to one-month highs overnight. A tailwind of positive sentiment comes from Washington and China lauding substantial progress in talks while pointing to the likeliness of an interim deal.
The oil market had one of those meltdowns on Monday’s only set the stage for a turnaround Tuesday. Despite all of the doom and gloom talk, the whisper number on the street may actually give the market a surprise.
The oil market has some big shorts to deal with. Bloomberg News reports that the short position in WTI has almost tripled since mid-September. Still, overnight oil is lacking conviction in two-sided overnight trading with more downticks than up.
U.S benchmarks are shaking off weaker than expected China GDP from last night, the worst in nearly 30 years. Coming in at 6.0% versus 6.1% expected, it’s an ever-present headline reminder of the deteriorating growth conditions around the world.
The U.S. refining system sunk deeper into hibernation as the Energy Information Administration reported that U.S. refineries fell to only 83.1% of their operable capacity last week, the lowest level since 2017.
The American Petroleum Institute (API) more than lived up to the whisper number on crude oil by reporting a massive 10.451-million-barrel increase in crude oil supply. Yet as impressive as the number night seem, it appears that it was mostly priced in causing only modest selling after its release.
 U.S benchmarks have been subdued just slightly from yesterday’s exuberance. Strong earnings, solid economic data and formidable Brexit framework all lifted the S&P by 1.1% and the NQ by 1.3%.
Slowing global economic concerns have OPEC already planning an additional production cut
Mood shifts in the oil market are becoming more violent and lacking any trend. Prices spiked to 63.89 on the Saudi attacks and broke down to 50.99 before recovering into what is now one of the wildest trading rages in recent memory.