The U.S. oil boom has put European refineries out of business and undercut West African crude suppliers. Now domestic drillers threaten to roil Asian markets and challenge producers in the Middle East and South America.
A showdown in Libya is spiking oil as rebels refuse to allow the government to ship oil from three different ports. The government last week said that oil would be shipped even if they had to use force.
Word that the Citgo Lamont Refinery was listing raised fear in the broader RBOB futures market that that refinery could be down for many months. Today is Fed day and I am talking about supply and demand and not about the Fed!
We said the break was coming in oil and it came with an accentuation point from the EIA. Surging supply and the lessening of the Fed’s influence on the market should force a test to the lower end of the old support near $88.
The market is taking in stride the first potential hurricane in the Gulf of Mexico this season as its seems a bit more worried about a government shutdown ahead of a looming deadline over the fiscal ceiling debate.
U.S. oil production is soaring, hitting the highest level in 22 years at 7.55 million barrels a day! Oh sure U.S. oil supplies fell by 2.8 million barrels but that was mainly because U.S. refiners went on a tear producing product.