U.S. Consumer Confidence Hits Nine-Month Low
September 25th, 2019
US consumer confidence came in much worse than expected. It came in at 125.1 and this after a 134.2 revised August number. This was well below the expected number at 133.5. This was the biggest drop in nine months.
The API released their inventory figures last night and they call crude stocks up 1.4 million barrels. The stocks of crude at Cushing, Ok, the NYMEX WTI crude oil future delivery point were up 2.3 million barrels. Gasoline stocks were up 1.9 million barrels and distillate were down 2.2 million barrels.
The average estimated for today’s DOE inventory report from the Bloomberg survey are for crude stocks to be up 79,000 barrels, gasoline stocks down 503,000 and distillates down 941,000. If we do see a build in crude stocks in today’s report it should put some downside pressure on crude,
The markets started out higher yesterday as everyone thought there was good news on the China and US trade front based on comments made by Treasury Secretary Mnuchin. But as the day wore on President Trump in his comments before the United Nations was not as optimist and he said he would only do a deal with China that was fair for the United States.
The market continues to trade in a range being moved by headlines. Today the market is trading down in early trading as the DOE inventory report will give some short-term data for the market to react to and trade off near term.
Iran’s President, Hassan Rouhani, said he is open to discussing small changes, additions or amendments to the nuclear deal if sanction imposed on Iran are lifted. This gave hope that the US and Iran might be able to meet and defuse some of the tension.
Frances’s President, Emmanuel Macron told his Iranian counterpart, Hassan Rouhani, that the path to reduced tensions in the region has become smaller and the moment has come for Iran to help defuse the crisis. The two leaders talked for more than 90 minutes shortly after Macron, British Prime Minister, Boris Johnson and German Chancellor, Angela Merkel, laid the blame for the September 14th attack on Saudi oil facilities on Iran.
Iran’s Foreign Ministry spokesman, Abbas Mousavi, said that a statement by Britain, France and Germany accusing it of responsibility for attacks on Saudi oil facilities showed that they lacked the will to confront US “bullying.”
British-flagged tanker, Stena Impero, detained by Iran in July, is still in the country despite Iranian officials saying it was free to leave. Iran’s ambassador to the UK, Hamid Baeidinejad, said the Swedish-owned vessel was free to leave after legal hurdles had been cleared. Stena Bulk Chief Executive Erik Hanell said the following in a text message, “At this point we are simply waiting for the guards onboard to leave and for the ship to receive clearance to sail.” It appears that progress is being made but the ship is not on its way out just yet. Other reports said they were waiting on other ships to arrive that would be their escorts.
The commodities and equites market also saw some increased selling pressure yesterday when Speaker of the House Nancy Pelosi announced the opening of a formal impeachment inquiry into President Trump.