Crude oil prices are higher a day before the Brexit vote in the UK and after a supportive weekly inventory snapshot released by the API late yesterday afternoon. The latest polls indicate the expected vote in the UK is still too close to call—a shift from last week’s sentiment when the Leave vote had a statistically significant lead.
In spite of the latest forecast from the International Energy Agency (IEA) yesterday suggesting that the global crude oil market is already rebalancing the market has been in a retracement mode since late last week
Gold output across the globe hit an all-time high in 2015, climbing 1.8% to 3,211 tonnes. Much of this growth was led by Mexico, whose output increased double digits (18 percent) from 112 tonnes in 2014 to 133 tonnes last year. Indonesia grew 20%, Kazakhstan 29%. We explore and discover the world’s top 10 gold producing mines.
Crude oil prices are moving lower for the second day in a row after a string of weekly increases during the last two months. More market participants are currently pricing in a non-eventful OPEC meeting with more of the same as OPEC is most likely to maintain their market share strategy and let the market price of oil eventually move global oil supply and demand back into balance.
A larger than expected crude oil draw reported in the API weekly inventory snapshot firmed prices ahead of this morning’s more widely followed EIA oil fundamental report. Both the spot WTI and Brent contracts are trading above the $49 per barrel level and are higher for the week after a modest round of selling to start the trading week on Monday.
Once again bearish news is hitting the crude oil complex and once again the market is hardly reacting to it. Reuters is reporting that some Canadian oil sands production restarted while the API reported yet another new all-time record high level of total combined inventories of crude oil and refined products.
Crude oil prices are drifting lower for the third trading session in a row after rising for the previous four weeks in a row. The market sentiment may be experiencing a change in the short term as the current fundamentals remain simply bearish. The upside momentum driven by the perception view than the market is already in a rebalancing pattern is slowing. The majority of the current bearish fundamental data hitting the media airwaves over the last week or so has pushed the perception view to the background for the near term.
WTI and Brent are now at the highest level of the year as even this week’s fundamental snapshot (basis API) was bullish. The battle of views continues with the view that the market is already in a rebalancing pattern continuing to dominate the narrative as well as the short-term direction of the market. Unless there is a more consistent pattern of bearish current fundamentals the upside rally is likely to continue.
Crude oil prices are retracing this morning after another build in U.S. crude oil stocks reported by the API late yesterday afternoon along with news that the Kuwait oil workers’ strike is over after three days. Kuwait production is going to ramp up quickly with Reuter’s reporting that production already increased by 500,000 bpd today with expectations that Kuwaiti production will reach the average March level in a few more days.
After rising to the highest price this year, crude oil prices are starting out the early U.S. trading session in negative territory. The market remains primarily focused on Sunday’s OPEC/non-OPEC meeting with most everything else remaining in the background.