Trade Agreement to Reduce, Not Eliminate, Economic Uncertainty
January 20th, 2020
The Energy Markets are closed to today from Martin Luther King Jr. Day. We are not able to offer any contracts today.
International Monetary Fund Managing Directory, Kristalina Georgieve, said the signing of the Phase 1 trade agreement between the US and China will reduce, but not eliminate, uncertainty that has impacted global economic growth.
Baker Hughes reported that the US added oil rigs for the first time in four weeks. Oil rigs were up 14 rigs to a total of 673. Total rigs are down 179 rigs from last year at this time.
The Commitment of Traders report showed that managed money funds in the week ending January 14th cut their net long position for the first time following five consecutive weeks of increases. The funds cut their net long position by 64,016 contracts on the week to 267,537 contracts on a combined NYMEX and ICE futures and options basis. The InterContinental Exchange reported that Brent crude speculators increased their net long positions by 399 contracts to 426,162 in the week ending January 14th. It also reported that gasoil speculators cut their net long position by 30,888 contracts to 86,627 contracts on the week.
December industrial production fell 0.3%, in line with expectations. Housing numbers are strong with housing starts for December up 16.9%. This is a strong number and the highest level since December 2006. The year on year number is now up to 40.8%, this equates to 1.608 million units annualized beating expectations by 1.375. Housing permits were off 3.9% after hitting a 12-year high last month.