• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 6 hours Tidal Power Closer to Commercialisation
  • 6 hours US-backed coup in Venezuela not so smooth
  • 3 hours Oil-sands recovery by solvents has started on a trial basis; first loads now shipped.
  • 3 hours New Rebate For EVs in Canada
  • 10 hours Read: OPEC THREATENED TO KILL US SHALE
  • 4 hours Solar to Become World's Largest Power Source by 2050
  • 11 hours Why U.S. Growers Are Betting The Farm On Soybeans Amid China Trade War
  • 18 hours Fisker Announces 'Mass Market' Electric SUV
  • 6 hours Malaysia Oil & Gas Updates
  • 1 hour Boeing Faces Safety Questions After Second 737 Crash In Five Months
  • 2 hours Oil stocks are heating up again! What's on your Watchlist?
  • 7 hours Biomass, Ethanol No Longer Green

Oil Markets Stuck As Hedge Funds Remain Bearish

stocks

The penultimate full trading week of 2018 brought no clear indication of where oil markets would go in the upcoming weeks. On one hand, the OPEC/OPEC+ deal placated fears that Q1 2019 would end up in an oversupplied market, on the other hand signals of demand weakening in China amid slower-than-expected economic growth figures and decelerating refinery throughput have largely resulted in oil teetering around the same levels as it was last week.

Brent closed the week trading around 61 USD per barrel, whilst WTI traded in the 52-52.5 USD per barrel interval on Friday. As it seems, global crude prices will not react to the Vienna Agreement until the states effectuate the production cuts and traders see actual changes in inventories – a development that is expected to surface only in January-February 2019.

1. US Commercial Crude Stocks: Every Little Helps

(Click to enlarge)

- US Commercial crude stocks have continued their decrease after last week’s trend reversal, dropping 1.2 MMbbl week-on-week to 442 MMbbl.
- Confirming our last week’s prediction, the US went back into net crude importer category after exports dropped 929kbpd and imports grew by 1.1mbpd w-o-w.
- The overall slowdown in stock draws is a worrisome prospect as the US energy sector needs at least 3mbpd exports to keep stock levels in a manageable range, yet exports are far too volatile to attain that.
- Gasoline stock levels surged 2.1…




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