Low Demand, Tight Supply – Traders Unsure

Prices are continuing to hover between $70 and $72 yesterday, unable to make a decisive break higher or lower. While demand reports have been disappointingly low, supply is also tight – leaving traders unsure how to sort out the two. This morning WTI crude is trading slightly below yesterday’s closing price at $71.27, a loss of 65 cents.

Fuel prices are also wandering aimlessly as well. Diesel prices are currently trading at $2.3322, down 0.8 cents from yesterday’s close. Gasoline prices are trading at $1.9743, a down 0.3 cents.

The API released their weekly inventory data, which showed a surprise crude draw but mixed results for fuel stocks. The API’s data showed crude stocks down 2.1 million barrels, compared to the market’s expectation of a 2.2 MMbbl increase. Some of that crude decline might be traceable to Hurricane Michael, which caused oil production facilities to shut down in the Gulf of Mexico; however, the storm should have a stronger impact on next week’s report.

Mid-Week Round-Up

Wood Mac: When, why and how is the global energy transition going to happen?

Fleet Owner: Construction spending stays strong despite worker shortage

Ursa: 5 Takeaways from Platts Houston Global Crude Conference

Reuters: Exclusive: Don’t mention the oil price – U.S. legal threat prompts change at OPEC

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.

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