The WSJ covers a lot of moving parts in the oil supply/demand picture (http://www.wsj.com/articles/crude-falls-on-oversupply-concern-1468232493):
“In a note, Bjarne Schieldrop, chief commodities analyst from Sweden’s SEB bank, said the imminent return of Canadian and Nigerian crude oil after disruptions, along with the prospect of Libya starting to export oil again, has made markets more bearish.”
“On the demand side, the New York-based bank Morgan Stanley said in a note that refiners across the world are overproducing. If the products market becomes oversupplied it could ripple back to lessen crude demand this week which is “not helpful for oil balances and prices.
Other factors affecting prices this week include the U.S. ramping up its rig count. On Friday, industry group Baker Hughes Inc. reported that the number rigs looking for oil in the U.S. rose by 10, the fifth increase in the past six weeks, bringing the total rig count to 351.”
Here is the WSJ link: http://www.commodityresearchgroup.com/wp-admin/post-new.php
The EIA and OPEC will release monthly supply/demand reports tomorrow; the IEA’s report is due out on Wednesday…
Leave a Reply