• 35 mins Enbridge Pipeline Expansion Finally Approved
  • 2 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 hours OPEC Oil Deal Compliance Falls To 86%
  • 18 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 20 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 22 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 24 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 1 day Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 1 day Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 7 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 7 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 7 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 7 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 7 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 7 days Niger Delta State Looks To Break Free From Oil
  • 8 days Brazilian Conglomerate To Expand Into Renewables
Alt Text

Is OPEC Considering Deeper Output Cuts?

You could argue OPEC and…

Alt Text

Oil Prices Spike On Middle East Tensions

Oil prices jumped upwards on…

Alt Text

5 Players To Watch In The FinTech Revolution

Artificial Intelligence and Blockchain tech…

Matt Smith

Matt Smith

Taking a voyage across the world of energy with ClipperData’s Director of Commodity Research. Follow on Twitter @ClipperData, @mattvsmith01

More Info

Uncertainty About Asian Markets Keeps Oil Prices Down

Uncertainty About Asian Markets Keeps Oil Prices Down

Forty-six years to the day after Willie Mays hit his 600th home run, and the crude complex is striking out after yesterday’s winning performance; crude prices are crumbling as the windshield wiper of risk appetite swooshes from risk-on to risk-off.

Broader markets are being dealt a solid hand of the WBWs (whoop-bang-wallops, lest we forget) as fears rise up once more of global economic weakness led by emerging markets. Today’s sell-off is sponsored by news overnight from the Asian Development Bank, who has lowered its economic growth forecasts for Asia’s developing economies, driven by slowing growth in both China and India.

For a second consecutive day, there isn’t a lot for us to get our teeth into in terms of economic databytes; it isn’t until later that things pick up when we get the weekly API report, before a preliminary manufacturing number out of China tonight. Related: Russian Oil Industry Braces For Tax Hike

Checking in with retail gasoline prices, we can see that we are below $2.30/gal on the national average, with another few months of seasonal descent to come. Even Hawaii, traditionally the most expensive state, is below $3/gal. Los Angeles is still in three-dollardom, but prices are racing downhill after spiking earlier in the year due to refinery problems.

As the WTI October contract rolls off the board today, we are seeing further whipsawing as the market is characterized by Jekyll and Hyde mood swings each day. Even though the latest CFTC data is indicating that short positions are being unwound, consensus in the market seems to be that we are still that we are going to move lower from here. Some point to the next catalyst being higher global stocks amid refinery maintenance season, while others point to spluttering demand. All the while, it seems to be ignored that higher-cost production is being put through the wringer. Related: Iran Deal May Redefine The Middle East

Finally, a reader forwarded this piece, and asked for our thoughts – ‘Singapore’s Record Stockpile Of Fuel Oil Placed In Tankers‘. Our view is that these record stockpiles have been caused by exceptionally strong refinery runs, encouraged by attractive refining margins. While we expect to see slower exports from China going forward, we will also likely see lower Chinese demand due to slower economic activity. The combination of low freight rates and contango in the market have made it financially viable to store fuel oil on tankers in the first place, and although freight rates have recently rebounded, we still see strong supply going forward as refiners from Asian to the Arab Gulf continue to put products onto the global market.

By Matt Smith

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News