Daily Oil Fundamentals

OPEC+ Decision Is Not Entirely Helpful

06 Dec 2024

OPEC+ Decision Is Not Entirely Helpful

Yesterday's sedate affair in price action from oil contracts is not quite a damning verdict on OPEC's decision to roll current cuts into April 2025, but it hails a period of reflection. Those that follow oil balances will be quick to point out that the market just became a little tighter, well at least for the first part of 2025. However, if the plan to then unwind the first of 2.2 million over the ensuing year and the balance beyond to two-years from now, the market has just been offered another reason to stow any thoughts of a sustained medium/long-term rally, given that the current state of the world remains in similar form

Daily Oil Fundamentals

Calling On OPEC, Your Market Bulls Need You

05 Dec 2024

Calling On OPEC, Your Market Bulls Need You

Yesterday's price reaction within the oil market was rather counterintuitive. The overnight API data suggested the US had over the previous week, which included Thanksgiving, built stock across the main categories, yet the market continued to show positive leanings. When the official EIA Inventory Report was unveiled, not only was the Gasoline build of 2.36mb much lower than the API 4.6mb, the headline Crude EIA reading was of a 5.07mb draw, whereas the API predicted a build of 1.2mb but curiously WTI and Brent gave away nearly all the gains of the day with products actually falling beyond the previous day's lows.

Daily Oil Fundamentals

Geopolitics in Focus Again

04 Dec 2024

Geopolitics in Focus Again

One does not need explicit signs of demand growth or supply disruptions, the smell of it will tempt battered bulls to get back into the market. Despite the ceasefire agreement between Israel and Hezbollah brokered by the US last Monday and which came into effect a week ago the warring parties exchanged fire and traded accusations of breaching the truce.