CRUDE OIL US crude oil inventories decreased by 1.1 MMbbl the week that ended Dec. 13, according to last week’s report from the US Energy Information Administration. Gasoline inventories increased 2.5 MMbbl while distillate inventories increased 1.5 MMbbl. Total petroleum inventories posted a decrease of 0.9 MMbbl. US crude oil production was flat on the week, while imports were down 0.31 MMbbl/d to 6.6 MMbbl/d. The tariff deal between the US and China provided a tail wind to the market. WTI prices were firm last week, rising above $60/bbl and maintaining those gains through the expiration of the January contract. Prices softened slightly when the February contract took over as prompt but closed the week over $60/bbl. The fundamental implications of last week are showing strength, with doubts about the deal diminishing and additional support from the expectation reduced OPEC+ production during the first quarter of 2020. The Commodity Futures Trading Commission report released Friday and dated Dec. 17 showed a slight decline of 5,811 contracts by the Managed Money short position, but the Managed Money long position increased by 38,501 contracts. It has now become evident that the speculative trade expects the initial tariff agreement between the US and… continue reading
Continue reading The Week Ahead For Crude Oil, Gas and NGLs Markets – 12/23/2019. This article appeared first on CTRM Center.
Source: CTRM Center