The Energy Space
Energy Price Outlook
It was deja vu all over again for the oil markets yesterday, as both WTI and Brent made small losses within inside-day trading ranges. The incremental information in yesterday's session basically included pressure from weak oil demand and increasing worries about the upcoming German local elections, while support came from increased speculation about accommodative monetary policies in Japan and China. In the background, pressure will remain in place from the likelihood of upcoming gains in DOE crude oil stocks, and from Tuesday's monthly EIA report which showed 2014 supply growth outpacing demand 1.7 mb/d to 1.35 mb/d. The upside will continue to focus on improving economic data, managed money account buying, increased regulation of Arctic drilling permits in the wake of Shell's incident, and refinery issues at Motiva's Port Arthur facility. Chinese trade data will be released Wednesday evening and will give the latest read on the strength of oil imports. We would maintain our June WTI-Brent trade entered on Jan 4th at -$14.25 with a target at -$8.00. The ramp-up of the Seaway pipeline to higher capacities this week should narrow that spread....2238 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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