Crude Oil Crude prices rallied smartly from lows on rumors that cuts would deepen. After hitting a low of $50.71 /bbl Brent settled 69 cents higher at $52.15 per barrel and WTI settled 90 cents higher at $49.80 per barrel. As mentioned earlier, most of this rise was due to short covering, especially in the wake of a report that Russia would discuss the possibilities of deepening the cut with Saudi Arabia. Weak shorts would have…
Read MoreCrude Oil Crude prices tanked by around 5% yesterday after the OPEC announcement that production cuts will stay in place as is for the next 9 months. Brent settled $2.50 lower at $51.46 per barrel and WTI settled $2.46 cents lower at $48.90 per barrel. There are many ways to explain the market’s disappointment with this announcement. We outline a few below Markets were expecting deeper cutsWhat seems to have transpired is that no consensus appears…
Read MoreCrude Oil Crude closed marginally lower yesterday notwithstanding supportive stock data reports from the EIA. Brent settled $0.19 lower at $53.96 per barrel and WTI settled $0.11 cents lower at $51.36 per barrel. The primary reason for this seemingly lacklustre reaction to bullish data out of the EIA seems to be the overhang of today’s final OPEC meeting today to decide the period of extension of production cuts. The market has priced in an extension of…
Read MoreCrude Oil Crude closed slightly higher on Tuesday amid mixed API Inventory Data which saw a less than expected draw down in crude and more than anticipated draw down in gasoiline and distillates. Brent settled $0.28 higher at $54.15 per barrel and WTI settled $0.34 higher at $51.47 per barrel. The Brent-WTI differential continued to reduce settling at its lowest level of $2.68 /bbl, for this month. All eyes are now on the upcoming OPEC Meeting…
Read MoreCrude Oil Crude closed up on Monday with Brent settling $0.26 higher at $53.87 per barrel and WTI settling $0.80 higher at $51.13 per barrel. The higher gains in WTI vis a vis Brent brought the Brent-WTI differential down to $2.74 /bbl, much lower than the average of $2.95 /bbl seen this month. Oil is trading lower today after U.S. President Donald Trump proposed the sale of half the country’s strategic oil reserves in his budget plan.…
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