Oil falls as China considers intervention to ease coal crunch
Oil prices fell on Wednesday after the Chinese government stepped up efforts to tame record high coal prices and ensure coal mines operate at full capacity as Beijing moved to ease a power shortage. Brent crude futures fell 85 cents, or 1%, to $84.23 a barrel at 1217 GMT, paring a 75 cent rise in the previous session, but still lingering close to multi-year highs. Click Here to read more from Reuters.
Oil Price Fundamental Daily Forecast – Worries Over Rising US Production Offset by Winter Demand Expectations
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading mixed on Tuesday after posting a volatile two-sided trade earlier in the session. The markets are also trying to regain yesterday’s loss that was posted during the formation of a potentially bearish technical closing price reversal top. If anything, the chart pattern suggests the selling is a little greater than the buying at current price levels. Click Here to read more from FX Empire.
Draws In Product Inventories Offset Rising Crude Stocks
The American Petroleum Institute (API) on Tuesday reported its fourth straight week of crude oil inventory builds. The week, according to the API, the build was 3.294 million barrels-strong. U.S. crude inventories are still 63 million barrels below where they were at the beginning of the year. Analyst expectations for the week were for a build of 2.233-million barrels for the week. In the previous week, the API reported a surprise build in oil inventories of 5.213-million barrels, compared to the 140,000 barrel build that analysts had predicted. Click Here to read more from Oil Price.
Jim Cramer warns that the stock market could be ‘toast’ if oil prices keep climbing
CNBC’s Jim Cramer said Monday the oil rally could eventually unsettle the stock market. “If you want the rest of the stock market to keep climbing, oil needs to stop going higher, otherwise we’re toast,” the “Mad Money” host said, after the price of West Texas Intermediate (WTI) crude hit $83.87 on Monday, which is the highest level since October 2014. Cramer said that price is “much too high for my taste,” while seeking to draw attention to what he believes is contradictory behavior in the markets. Click Here to read more from CNBC.