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11 Dec 2014
Oil rallies after yesterday's fall, no floor in sight yet – Malcolm Graham-Wood
FXStreet (Barcelona) - Independent Analyst, Malcolm Graham-Wood, notes that oil rallied this morning after yesterday's soft performance due to OPEC’s statement, but there is no floor in sight yet.
Key Quotes
“Yesterdays fall was primarily down to Opec who said that on their latest figures 2015 demand was likely to be the weakest in 12 years. Their new number is 28.9m b/d, down another 300/- and piles pressure on an already fragile market. Kuwait didn’t actually help matters by offering the largest discount to its Asian customers since 2008 at $3.95 per barrel less than Oman/Dubai quotes.”
“No wonder we are already hearing talk of an emergency Opec meeting, calls that will not be listened to by the Saudis or by the sounds of it, in Kuwait. The EIA inventory stats followed on from the API numbers in showing a crude build of 1.5m barrels vs a whisper of a draw of 2.6m, take a look at the product builds which totalled over 6m barrels, high even after under-reporting of the Thanksgiving numbers and record refinery runs.”
“Oil has rallied this morning, and is a good dollar up from yesterdays lows ($60.43 and $63.56) but there is no floor in sight and although the market will have good and bad days the bias is still down, a market made for the shortest of short term traders.”
Key Quotes
“Yesterdays fall was primarily down to Opec who said that on their latest figures 2015 demand was likely to be the weakest in 12 years. Their new number is 28.9m b/d, down another 300/- and piles pressure on an already fragile market. Kuwait didn’t actually help matters by offering the largest discount to its Asian customers since 2008 at $3.95 per barrel less than Oman/Dubai quotes.”
“No wonder we are already hearing talk of an emergency Opec meeting, calls that will not be listened to by the Saudis or by the sounds of it, in Kuwait. The EIA inventory stats followed on from the API numbers in showing a crude build of 1.5m barrels vs a whisper of a draw of 2.6m, take a look at the product builds which totalled over 6m barrels, high even after under-reporting of the Thanksgiving numbers and record refinery runs.”
“Oil has rallied this morning, and is a good dollar up from yesterdays lows ($60.43 and $63.56) but there is no floor in sight and although the market will have good and bad days the bias is still down, a market made for the shortest of short term traders.”