Eye on Energy

WTI Crude Plunges Over US$4/b to US$73.10/b As OPEC Plans To Open The Spigots In Q4/24. Global Economic, Political & Military Update OPEC’s announcement to gradually phase out the 2.2 Mb/d of quota cuts (starting October 1st) was not received well by the markets. In the details an agreement to give the UAE a 300 […]

Total US Inventories Grew By 13.2 Mb Last Week. Crude Prices Under Pressure. Global Economic, Political & Military Update Bearish commentary from the Fed meeting notes and repetitive comments by Fed officials that they see no reason to lower interest rates in the near term has spooked markets. There have even been some officials saying

US Stock Build Adds To Downside Price Pressure. A Breach Of US$75/b Is Likely In The Near Term. Global Economic, Political & Military Update Market bulls lifted the Dow over 40,000 last week but worries about interest rates and Treasury record refundings have pulled it back to 39,800, a still overvalued level. Everyone is waiting

WTI Breaches US$77/b On Weaker US Demand And Growing Inventories. Global Economic, Political & Military Update Market bulls jumped all over the bond and stock markets on the tepid CPI report today. They have renewed the call for the Fed to cut rates at their September FOMC meeting. We suspect this is premature as PPI

WTI Crude Oil Falls On Weaker US Demand And Rising Inventories. Global Economic, Political & Military Update Inflation pressure persists in the US leaving the Fed little room to lower rates at the coming meetings. Insurance, housing, food, electricity costs are all making consumers less able to afford what would have been considered basics. Going

Large US Crude Inventory Build Drags WTI Below US$80/b. There Is An Inventory Excess Around The World, Even Lower Prices Expected In The Near Term. Global Economic, Political & Military Update Rising and pernicious US inflation now means that the US is unlikely to see a pivot and a cut in rates before the US

Large Increases In US Commercial Crude Stocks And Components, Highlights Oversupplies. Crude Overpriced If Not For Geopolitical Risk. We will be moving our office in the last two weeks of April so our next ‘Eye On Energy’ will come out on May 1st, subject to our computers and tech being up and running on Friday

Fear Of War Directly Between Iran And Israel Lifts Crude Prices US$6/b Over The Last Week. Global Economic, Political & Military Update Decent US economic growth accompanied by rising inflation (CPI and PPI) is making the pivot to lower rates more difficult for the Fed. The US 10-Year Treasury yield has risen from 4.09% at

US Crude Inventories Rise For Commercial Stocks And At Cushing. WTI Likely To Fall Below US$80/b Shortly. Global Economic, Political & Military Update Rising inflation pressure globally and decent economic growth are making it harder for the Fed to reduce interest rates. Investors have an expectation that the first of three 25 BP cuts will

Ukraine Bombing Of Russian Refineries Adds US$2/b To War Premium Over The Last Week. Global Economic, Political & Military Update Today’s FOMC meeting and press conference by Chairman Powell thereafter, reiterated their plan to have three rate cuts of 25 BP each later this year. When, was left ambiguous. While there has been significant progress