J.P. Morgan Cut Its Estimate on U.S. Economic Growth
July 26, 2019
The energy market has balled itself up into a tight range of congestion the last few days. All the issues both positive and negative are still a concern for traders but nothing new has developed in these area. The market is just marking time and traders keep a watch for any changes in the Iran tensions, China trade war or the other issues for the market. Trading has been both positive and negative here today but as the day wears on I would guess that nobody is going to want to go home short over the weekend so a round of short covering to push prices higher is likely.
Canadian producers are hoping to convince the Alberta government to lessen the production quotas thus allowing them to produce more crude. Quotas were implement as the country had a glut of crude oil and prices fell hard because crude could not get moved because of pipeline constraints.
Britain’s Ministry of Defense stated that the country’s navy will accompany British-flagged vessels through the Strait of Hormuz in order to defend freedom of navigation after Iran seized a tanker.
Saudi Arabia’s Energy Minister, Khalid al-Falih, called on global oil buyers to secure their energy shipments passing through the Strait of Hormuz.
J.P. Morgan cuts its prior estimate on US economic growth in the second quarter to 1% even in the wake of a larger-than-forecast increase in domestic durable goods orders and a fall in trade goods deficit in June.