Market Insights

September 1, 2016 • Posted in Market Insights

Week of August 29, 2016

  • Oil prices moved down last week on strong OPEC & US production which is leading to crude oil and distillate inventory levels that are nearing record levels globally
  • Concerns around output curbs following an OPEC meeting to be held in Algeria in September have subsided on softening comments from Saudi Arabia
  • Trading in the options market has turned bearish on low refining margins and the expectation oil demand will drop as the peak refinery turnaround season approaches
  • Speculation that the US Fed will delay interest rate hikes is weakening the US dollar and providing some upward pressure on oil, but not enough to offset the downward pressure coming from oversupply
  • Natural gas prices hit $2.84 per MMBtu NYMEX on Thursday on slower than expected inventory growth driven by continuing heat waves and higher electric power demand

 

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