Month: August 2012

So far, it does not appear that “Isaac” has left much energy infrastructure damage in its wake. However it will take a few days to assess, as a considerable portion of Gulf output remains shut-in. Meanwhile, late week focus will fall on the Jackson Hole Symposium as market participants await Fed Chairman Bernanke’s address Friday morning for hints of policy direction.… Read more

Misinterpretations of IEA commentary and a bearish API report have weighed on prices, at least for today’s session, so far. Late yesterday, G-7 finance ministers called on the IEA to take appropriate action to ensure the market was fully supplied. and that they remain vigilant toward risks to the global economy posed by elevated oil prices.… Read more

Initial price action on last night’s lower Asian opening appeared to trump “Isaac”, and demonstrated oil’s vulnerability to the emerging weak global economic conditions. Japan cut its forecasts for the economy citing the global slowdown which will affect its exports as a consequence of deceleration in the United States and China, as well as Europe’s ongoing debt conundrum.… Read more

gap of .33 cents was registered on last’s night’s Asian opening, as TS Issac, looks set to head into the producing regions of the Gulf of Mexico, after it reaches hurricane intensity today. The spectacular pictures of and tragic story of Venezuela’s Amuay refinery has also served to bolster prices, especially gasoline, which spiked as much as 10 cents per gallon higher in overnight trading.… Read more

October NYMEX WTI posted the largest decline in some time yesterday, retreating from a key technical level. The elements that drove prices $20.00 higher over the last few months are still in place, but commentary emanating from various meetings around the continent between European policymakers, showed continued fecklessness towards a solution to their monetary conundrum.… Read more

The beat goes on. October NYMEX crude oil debuted as front month, posting another fresh high for the move off the late-June lows, already this morning at 98.29. The familiar rationale of expectation of stimulative activity has been at work on market participants again.… Read more

Crude oil keeps posting fresh highs for the move off the June lows. Last night’s API report, showing a significant draw down of stockpiles should have caused the rally to extend, but prices could only manage to move slightly above 97.00 all night.… Read more

Morning reportage is pointing to the usual suspects in pushing oil prices to levels not seen since last May. North Sea maintenance, rising Middle East rancor, comments from European policymakers and dollar weakness. So, in an environment of expectations for rising demand and increasing threats to supply, why are prices not even higher?… Read more

Market participants appear to be unfazed by threats to release strategic reserves. The rise in prices looks to be more influenced by potential threats to supply, both from North Sea maintenance problems or geopolitics as Syria disintegrates and rhetoric on Iran’s nuclear intransigence escalates.… Read more

Rising tension in the Middle East, declining US crude stockpiles and expectations for lower North Sea oil output lent support to both Brent and WTI yesterday, pushing Brent’s premium to WTI to the highest level since last October. Equally supportive were more hints from the ECB President of some action in which participants might invest hopes for improved energy demand growth.… Read more