Mid-Week Review

Oil prices recover with a weaker dollar, China demand and OPEC’s supply answer in play

Oil prices jumped back on Tuesday from a soft start to the week, spurred higher by a depreciating dollar that boosted demand for most commodities. On the other hand, assets perceived as risky, including stocks, turned mostly defensive and oil demand strength was under scrutiny after China PMI reports proved largely disappointing, suggesting that stimulus to prop up the growth engine remained necessary. Oil contracts have moved in choppy fashion since late last week in the wake of U.S. President Donald Trump’s latest call on the Saudis and allies to boost crude production. Click here to read more from Marketwatch.


Iran says it will keep exporting oil despite U.S. pressure

Iran will continue to export oil despite U.S. pressure aimed at reducing the country’s crude shipments to zero, Iranian President Hassan Rouhani said on Tuesday. “America’s decision that Iran’s oil exports must reach zero is a wrong and mistaken decision, and we won’t let this decision be executed and operational,” Rouhani said in a speech broadcast live on state television. “In future months, the Americans themselves will see that we will continue our oil exports.” Click here to read more from Reuters.


A New Mega Cartel Is Emerging In Oil Markets

China and India—two of the world’s largest oil importers and the biggest demand growth centers globally—are close to setting up an oil buyers’ club to have a say in the pricing and sourcing of crude oil amid OPEC’s cuts and U.S. sanctions on Iran and Venezuela, Indian outlet livemint reports, citing three officials with knowledge of the talks. This is not the first time that the two major oil importers are working to create such an oil club. India and China have discussed creating an ‘oil buyers’ club’ to be able to negotiate better prices with oil exporting countries and will be looking to import more U.S. crude oil in order to reduce OPEC’s sway, both over the global oil market and over prices, India’s Petroleum Ministry said in June 2018. Click here to read more from Oilprice.com.


A Fleet of Tankers Is Hoarding Oil for a Gathering Storm

The Strait of Malacca off Singapore and Malaysia is not only a waterway linking supply from the Middle East, Africa and the U.S. to Asia, but has also been used in the past decade to store millions of barrels of oil for future sales. Now, with new ship-emission regulations taking effect in 2020, traders are using the channel to hoard fuels for which demand will boom. Some of the top trading houses are beginning to gather a fleet of tankers to receive, store and resell products such as low-sulfur fuel oil, diesel and light-cycle oil in what would effectively be a mini supply and distribution hub out at sea. That’s ahead of Jan. 1, when International Maritime Organization rules will require ships worldwide to stop burning dirty fuel and use relatively cleaner supply. Click here to read more from Bloomberg.



Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

Sign up for FUELSNews for daily market information and insights
Sign Me Up
Give Us a Call Today

We are happy to discuss your business challenges over the phone and answer any questions.


Send Us an Email

Ask your toughest questions. We'll get back to you with the best answer humanly possible.

Send Email

Find a Mansfield Location

Need to contact a specfic office? View contact information for offices across the country.

View Locations

Get a Quote Today

Let us know what type of fuel or service you need and a team member will get a quote to you quickly.

Get a Quote