Oil prices have roller-coastered higher and now lower this morning following OPEC+'s decision to hike output minimally, and also note they have limited capacity for further increases. WTI traded lower overnight after an unexpedctedldy large crude build was reported by API.
“The announced increase from OPEC+ equates to a nonevent,” said Stacey Morris, head of energy research at VettaFi. “The amount is so modest that it is a rounding error for global oil markets,” she added, noting that the market remains “hypersensitive” to supply and demand dynamics and that “volatility around headlines is not going away.”
The oil market has reversed those OPEC+ gains as investors once again focus on fears of a global economic slowdown as signaled by numerous PMI/ISM surveys in the last few days.
API
Crude +2.165mm (+467k exp)
Cushing +653k
Gasoline -204k
Distillates -351k
DOE
Crude +4.47mm (+467k exp)
Cushing +926k
Gasoline +163k
When the US sneezes, the world – including emerging markets and developing countries – catches a cold. So goes the dictum. But does it still hold? Reports argue the US slowdown and strong dollar might hit emerging markets harder this cycle. They are conflated with analyses of massive debt distress facing low-income countries, discussions about spillovers and volatile capital outflows hitting EMs and LICs and arguments that a Federal Reserve-driven global financial cycle warrants stepped-up foreign exchange intervention and capital controls.
“The announced increase from OPEC+ equates to a nonevent,” said Stacey Morris, head of energy research at VettaFi. “The amount is so modest that it is a rounding error for global oil markets,” she added, noting that the market remains “hypersensitive” to supply and demand dynamics and that “volatility around headlines is not going away.”
The oil market has reversed those OPEC+ gains as investors once again focus on fears of a global economic slowdown as signaled by numerous PMI/ISM surveys in the last few days.
API
Crude +2.165mm (+467k exp)
Cushing +653k
Gasoline -204k
Distillates -351k
DOE
Crude +4.47mm (+467k exp)
Cushing +926k
Gasoline +163k
When the US sneezes, the world – including emerging markets and developing countries – catches a cold. So goes the dictum. But does it still hold? Reports argue the US slowdown and strong dollar might hit emerging markets harder this cycle. They are conflated with analyses of massive debt distress facing low-income countries, discussions about spillovers and volatile capital outflows hitting EMs and LICs and arguments that a Federal Reserve-driven global financial cycle warrants stepped-up foreign exchange intervention and capital controls.