Crude Oil Crude prices ended slightly higher on Tuesday with Brent rising 14 cents to settle at $52.29 per barrel and WTI rising 17 cents to settle at $49.97 per barrel. The Brent-WTI differential continues to narrow settling at its now month low of $2.32 per barrel. One of the key reasons for this is that the U.S. demand for transport fuels tends to rise significantly as families go on vacation during the summer months, with the so-called summer driving season…
Read MoreCrude 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…
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