Crude oil price reversed course after a mixed Energy Information Administration supply report. There were also comments that Saudi Arabia is going full out and will immediately implement its 486,000 barrel a day production cut to show they are serious about compliance and to inspire other producers to do the same.
The shortest day of the year is today as tomorrow days will get longer and hopefully less cold unless you’re long natural gas. The Energy complex ought to show interesting trade this winter with the weather and a new administration at the helm. On the Corn front the strong U.S. dollar has pressured the market and exports will key this market.
RBOB gasoline futures rose to the highest level since June, giving some support to oil that is suffering from seasonal weakness and concerns about oversupply. Price spikes along the East Coast are inevitable as cash buyers scramble to secure supply.
Crude oil prices saw a quick reaction after the Energy Information Agency showed a draw in a surprise drop in crude but fell sharply as traders mulled an increase is U.S. crude oil production as well as a colonial pipeline inspired increase in distillate stocks.
The crude oils are trading lower after the EIA released its latest weekly oil inventory report. The data showed that total crude and product stocks increased by 4.503/mmbls to 1404.679/mmbls for week ending Aug. 26.
Crude oil prices are rebounding after getting smashed on Monday on hopes for more stimulus and pending the outcome of some oil export issues in Iraq. On Monday, oil had a hard time finding support as the dollar saw strong buying and a report by Plats that put OPEC production up 300,000 barrels last month to 32.73 million barrels of oil a day, which would be an eight-year high.