• 10 hours Thanksgiving Gas Prices At 3-Year High
  • 14 hours Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 16 hours South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 19 hours Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 19 hours Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 21 hours Iraq Steps In To Offset Falling Venezuela Oil Production
  • 23 hours ConocoPhillips Sets Price Ceiling For New Projects
  • 3 days Shell Oil Trading Head Steps Down After 29 Years
  • 4 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 4 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 4 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 4 days Venezuela Officially In Default
  • 4 days Iran Prepares To Export LNG To Boost Trade Relations
  • 4 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 4 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 4 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 5 days Rosneft Announces Completion Of World’s Longest Well
  • 5 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 5 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 5 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 5 days Santos Admits It Rejected $7.2B Takeover Bid
  • 5 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 5 days Africa’s Richest Woman Fired From Sonangol
  • 6 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 6 days Russian Hackers Target British Energy Industry
  • 6 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 6 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 6 days Lower Oil Prices Benefit European Refiners
  • 6 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 7 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 7 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 7 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 7 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 7 days OPEC To Recruit New Members To Fight Market Imbalance
  • 7 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 7 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 7 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 8 days GE Considers Selling Baker Hughes Assets
  • 8 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 8 days Saudi Aramco To Invest $300 Billion In Upstream Projects

Breaking News:

Thanksgiving Gas Prices At 3-Year High

Alt Text

Are Electric Cars As Clean As They Seem?

Electric cars are set to…

Alt Text

What A U.S. Electric Grid Attack Looks Like

The electrical system is the…

Oil Edges Up After Biggest Draw In U.S. Crude Stocks This Year

Oil Edges Up After Biggest Draw In U.S. Crude Stocks This Year

Today we celebrate polytetrafluoroethylene, for it is national Teflon day. Accordingly, the crude complex is refusing to stick to the script, and is rallying again amid ongoing global oversupply. Hark, here are six things to consider in the oil market today:

1) Despite a stronger dollar (aka a weaker euro), crude is rallying strongly today on comments out of Kuwait that a production freeze could still take place without the participation of Iran. Given that prices have rallied nigh on 50 percent since the start of talk about a production freeze, producers are almost incentivized to keep the rumor mill cranking. Related: Oil Prices Slide On Falling Hopes For Output Freeze

2) Last night’s API report has also added to the bullish hue of the oil market today. We discussed last week how the API numbers can differ wildly compared to the EIA’s report; since the beginning of last year, the crude inventory number has varied by an average of 1.96 million barrels – something to bear in mind. Our ClipperData points to a ding in imports last week from inclement weather (fog in the Houston Ship Channel), combining with elevated refinery runs to pave the way for a lesser build or draw.

3) On the economic data front, China’s Caixin services PMI followed the same trend as manufacturing data, coming in better than expected and rebounding on the prior month. German industrial production fell on the prior month by 0.5 percent, but was still better than expected. Data is light (well, non-existent) in the U.S. this morn, with Fed meeting minutes out this afternoon to shake, rattle and roll the US dollar. Related: Did Italy And Malta Actually Agree To Swap Oil Rights For Refugees?

4) This great piece from the mighty @JKempEnergy provides some nifty stats. It highlights that lower coal-fired power in the generation mix has materially helped reduce diesel demand, because it has hit the number of railcars transporting coal to power plants. Railcars accounted for 6 percent of diesel demand in 2014, while coal accounted for 38 percent of all tonnage carried by rail. Kemp also highlights how lower drilling activity is impacting diesel demand, given lesser need for diesel-fired generators.

5) In a similar vein, this piece today in the WSJ, highlights that class 8 truck sales are down 37 percent YoY in March, as freight slows. As inventories build at dealerships, lesser freight demand may too filter through to diesel demand. Related: $120 Oil As Soon As 2018?

6) Finally, yesterday we looked at the surreal situation of negative interest rates in Japan. A low interest rate environment prevails across the globe, with the yield on the BAML global bond index down to 1.3 percent, the lowest since records began nearly 20 years ago. As central banks have rolled up their sleeves to battle against deflation, this bond yield points to a global inflation rate of just 1.1 percent. Commodities have played their part in the global disinflationary move seen in the last year, and low energy prices should help to keep inflation in check going forward.

(Click to enlarge)

By Matt Smith

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Dean Liao on April 06 2016 said:
    Matt,

    I've been following this website for about two weeks now, and I love the concentrated focus on the oil industry, but your daily one liner intro puts a smile on my face every morning! Oh, the material is good too! Just wanted to give you a thumbs up!

    Dean
    (Riverside, CA)
  • Matt on April 06 2016 said:
    Thank you, Dean - very kind of you to say so!

Leave a comment




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