Market Insights

August 26, 2016 • Posted in Market Insights

Week of August 22, 2016

 

  • Oil prices continued to move upward again last week following the previous week’s news of planned talks by OPEC members and others aimed at slowing oil production and freezing prices
  • US EIA data showed a draw in US crude inventories and a drop in gasoline stocks
  • Distillate stocks and domestic crude production both increased meaning a fall in crude prices may follow soon
  • The US dollar softened on comments from the US Fed indicating that economic fundamentals likely weren’t strong enough to support an interest rate hike before the end of the year
  • Lessening concern over the impact of the UK’s exit from the EU also contributed to US dollar weakness
  • With the summer driving season coming to an end, and refinery turnarounds coming in the fall, many analysts see the current strength in oil as being short-lived
  • Natural gas remained around $2.67 MMBtu NYMEX and is expected to hold steady in the coming weeks as hot weather fuels demand for gas in power generation to run air conditioners

 

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