• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 2 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 23 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 11 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 2 days Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 3 hours Saudi Fund Wants to Take Tesla Private?
  • 7 hours Starvation, horror in Venezuela
  • 2 days Batteries Could Be a Small Dotcom-Style Bubble
  • 16 hours Venezuela set to raise gasoline prices to international levels.
  • 8 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 10 hours Are Trump's steel tariffs working? Seems they are!
  • 1 day Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 2 days France Will Close All Coal Fired Power Stations By 2021
  • 2 days Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
Alt Text

Nigeria’s State Owned Oil Company To Go Public

Nigeria's state owned oil company…

Alt Text

WTI Set For Longest Weekly Losing Streak Since 2015

West Texas Intermediate crude was…

Alt Text

Egypt Aims For Natural Gas Dominance In The Mediterranean

Positioned on the Mediterranean Sea…

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

Trending Discussions

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

Trending Discussions


Leave a comment

Leave a comment




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