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21 May 2015
Oil holding key support, aided by inventory numbers – Malcolm Graham-Wood
FXStreet (Barcelona) - Independent Analyst, Malcolm Graham-Wood comments on the oil market and further mentions that the above consensus fall in crude stocks lent support to oil prices.
Key Quotes
“Plenty to talk about on the oil price this morning as oil and products held key support levels yesterday and kicked on, aided by the overnight API inventory stats and later the EIA numbers. They showed that crude stocks fell by 2.7m barrels, higher than analysts forecasts of 730/- whilst in gasoline, inventories drew by 2.8m barrels.”
“On the evidence of May so far and numbers we can glean from various sources, we might be in a better supply/demand place than had previously been expected. The EIA report indicated that not only was US production 112/- b/d down but that demand was up 1.4m b/d at 20.23m b/d.”
“Another report worth taking a look at is the EIA one on downstream where they highlight the fact that margins are at ‘several year highs’. Their analysis of crack spreads show that with New York Harbour gasoline prices of $1.79 per gallon and Brent at the equivalent of $1.41 per gallon leaving a 38c/gallon margin, the highest April number since 2007. They also report that margins are high in Europe the Middle East and in Asia where demand for products, in particular liquid fuels is high and as a result gasoline prices are ‘robust’.”
Key Quotes
“Plenty to talk about on the oil price this morning as oil and products held key support levels yesterday and kicked on, aided by the overnight API inventory stats and later the EIA numbers. They showed that crude stocks fell by 2.7m barrels, higher than analysts forecasts of 730/- whilst in gasoline, inventories drew by 2.8m barrels.”
“On the evidence of May so far and numbers we can glean from various sources, we might be in a better supply/demand place than had previously been expected. The EIA report indicated that not only was US production 112/- b/d down but that demand was up 1.4m b/d at 20.23m b/d.”
“Another report worth taking a look at is the EIA one on downstream where they highlight the fact that margins are at ‘several year highs’. Their analysis of crack spreads show that with New York Harbour gasoline prices of $1.79 per gallon and Brent at the equivalent of $1.41 per gallon leaving a 38c/gallon margin, the highest April number since 2007. They also report that margins are high in Europe the Middle East and in Asia where demand for products, in particular liquid fuels is high and as a result gasoline prices are ‘robust’.”