Brexit Deal Optimism Adds Positivity to the Market
October 17th, 2019
The API inventory report out yesterday said that crude oil stocks were up 10.5 million barrels. Gasoline stocks were down 934,000 barrels and distillate stocks were down 2.9 million barrels.
Estimates for today’s DOE inventory are for crude to be up 2.495 million barrels, gasoline down 1.369 million barrels and distillates down 2.528 million barrels. This is from the Bloomberg survey.
Two senior officials said the White House is warning Chinese shipping companies against turning off their ships’ transponders to hide Iranian oil shipments in violation of US sanctions.
Expectations for today’s propane inventory update is to see a 373,400-barrel increase.
There is optimism about a Brexit deal being reached and that adds something positive to the market in term of potential economic impact. But this is a very fluid situations and I am not sure that any of this will be clear if a when a deal gets done.
The market was higher yesterday mainly driven but better than expected earnings for 9 of the 11 S&P 500 companies. The Dollar fell to a 5-week low also helping to support energy prices higher.
OPEC is committed to output cuts and that offered support to the energy markets yesterday. There is an OPEC meeting in early December, and they are hinting that they may make additional supply cuts.
The market is mixed so far this morning as it waits for today DOE inventory report.