Just after North Dakota celebrated its billionth barrel of oil out of the Bakken oil formation the U.S. Energy Information Administration (EIA) reported a record amount of oil in storage. Stockpiles rose 1.7 million barrels putting commercial crude inventories to 399.4 million barrels.
The Canadian dollar reached a four-year low for a second day amid speculation the nation’s central bank may signal at a meeting next week the need for lower interest rates amid faltering economic growth.
I have been telling my clients that for WTI crude oil to get above $100 a barrel we would need an event. Not only did Egypt's President act defiant against military demands, then we had a big drop in American Petroleum Institute's supply report.
Since the beginning of February, the discount of WTI to global prices has fallen quickly, primarily because of changes in pipeline infrastructure that has brought cheaper mid-continent crude oil to the U.S. Gulf coast.
Stimulus from China vs. concerns about Europe is creating a tug-o-war across the commodity complex. WTI oil prices also seem to be losing their relationship to the Brent crude as Middle East tensions are heating up.