Weekend News 16Feb


As inferred last week, here & herethe focus on the response to the 95s this week was well founded as the market challenged this key structural low early in the week. 

The market failed to breakdown there, creating the inventory adjustment rally phase up to the key structural high at/near 98s into midweek. 



The market achieved the stopping there, balanced, ultimately selling off back through the range late in the week, closing at/near 95.80s. 

Market response at 95s will be key again next week. The market condition is now of balance from 95s-98s, but IF 95s fail to hold as support, price discovery lower into Jan trade cluster, 94.30s-92.40s. IF 95s remain support, continued development in current balance, 95s-98s, would be expected.  

Graphics

Central Banks

Geopolitics

Supply/Demand & Markets

  • Planned Changes To US Crude Oil Pipeline Infrastructure Should Relieve Cushing Bottleneck. (EIA)
  • US Refiners Take Advantage Of Changed US Oil Landscape. (Platts)
  • How Do You Measure China’s Oil Demand? (FT Beyond BRICs)

Midweek News 13Feb

Source: EIA (Feb 2013)

Graphics

Central Banks

  • Fed & Foreign Banks. (Zerohedge)
  • G7 Reiterates Commitment To “Market Determined Exchange Rates”…. (Reuters)
  • Sovereign Defaults: Past & Present. (Zerohedge)

Geo-Politics

  • North Korea Conducts Third Nuclear Test. (AP)
  • Sanctions Cost Iran $40bln In Oil Export Revenue In 2012. (RT)
  • CNOOC Wins Final Approval For Nexen Buy. (Bloomberg)

Supply/Demand & Markets

  • API: -2.3mil v +2.4mil exp. (Reuters)
  • EIA: +600k v 2mil exp. (EIA) 
  • Big Shifts In Chinese Energy Consumption. (FT Alpha)
  • China Overtakes US As World’s Largest Trading Partner. (RT)
Outrageous Market Fortune
  • JPMorgan’s Excel Error Leads To Misreported VaR… For Years. (Zerohedge)