Do they see what I see? OPEC’s Secretary General Mohammad Barkindo is telling us that the global oil market is rebalancing fast as the glut of refined products is gone as he and OPEC take a victory lap ahead of their November OPEC meeting.
Oil prices are rising on hopes that Hurricane Jose will not do any damage to East Coast refiners that are running hot and heavy to make up for lost supply from Gulf Coast refiners that were hit hard by Hurricane Harvey. Refiners are already having success with getting gasoline prices to fall but there is more work ahead of them.
Crude oil prices sold off ahead of expiration as traders had their eyes on the skies and not their trading screens. Oil was eclipsed on a day where stock market volumes dried up and it seemed that traders ran for cover ahead of expiration. OPEC punted at their technical meeting and put off a decision to extend until their November meeting.
In the battle between the bulls and the bears, the one trend that remains constant is the trend of falling U.S. crude oil supply. Once again, the crude oil supply drop far exceeded market expectations, and according to data from the American Petroleum Institute, it fell by 9.2 million barrels last week.
Crude oil prices turned lower as the long-time oil bull, formally known as the "oil god,” threw in the towel on his largest Astenbeck Capital Management LLC commodity fund. Not only did he close the fund, he shook his bullish followers with a blasphemous statement that oil may be stuck around $50 a barrel or lower, I guess, forever. Yet, is this former oil deity, who has been brought back down to mere mortal status, getting out when it is really time to get in?