Oil again rejected the sub $40.00 a barrel area as talk starts to circulate that we could see a significant drawdown in U.S. crude oil inventory.
The refining world has changed. Now refiners are shutting down because the demand for fuel is weak and they can't make money.
OPEC+ is going to rollback cuts and add 1.5 million barrels of oil to the global oil market starting August 1. Now with more uncertainty about a Covid-19 second wave and a devastating weekly jobs reports, a historically wrong U.S. GDP number, perhaps at this time, a production increase might not be a great idea.
Markets are a bit hungover even as the party master, Jerome Powell, swears he will keep the party going. Despite all of the macro madness, the data at some point will matter.
Talk of a stimulus stall is holding crude oil back a bit after a surprisingly bullish 6.829 million barrel crude oil draw. The draw in part may be storm influenced in the U.S.
While the demand growth for oil may not be what it might have been, the reality is that oil demand growth will continue to grow. The expectations that electric cars and a carbon-neutral world will crush peak demand for oil is flawed.
With all of the excitement with a rising stock market and record prices on gold and explosive moves in silver, oil seems to be a bit left out.
Oil prices have come all the way back from before the OPEC-Russia price war. Both Brent crude and WTO have defied the skeptics proving once again that it’s futile to fight global central banks.
The EIA status report wasn’t all that oil bulls had hoped for. Instead of lowering weekly oil production figures after being stagnant for weeks, they raised it.
Crude oil has a Houston problem that is causing it to pull back from pre-oil price war highs. Not only did the API statistical bulletin report a massive 7.54 million barrel crude build, probably from near Houston and the Gulf Coast, but the U.S. State Department ordered the closure of China's consulate in Houston.