(Increasing production) will be more of a political move on the part of OPEC to calm high oil prices. |
1.6 million barrels is a comfortable level and we shouldn't see prices push upwards too much, ... If you say there is going to be a 3 million-barrel draw in distillate stocks, then I'd say we will see the market react in panic, and a strong rally will follow. |
1.6 million barrels is a comfortable level and we shouldn't see prices push upwards too much. If you say there is going to be a 3 million-barrel draw in distillate stocks, then I'd say we will see the market react in panic, and a strong rally will follow. |
After the hostages were released, it kind of eased some of the tension. |
Bearish (data) is widely expected and the market has already factored it in. But if it should show a recovery in demand, for example in gasoline, the market may rebound. |
But geopolitical factors have calmed down now and the Saudis have taken serious steps to quash the terrorist risk. |
Commodity-related funds remain in demand because the fundamentals remain the same -- we have strong economic growth in Japan, the United States and China that is going to drive up demand, while spare refining capacity remains limited. |
Demand is so high and capacity is so low, we can go from comfortable to uncomfortable inventories within a month. |
Even if there is a stock draw, unless it is substantially and unexpectedly high, I would not expect prices to go up above $60 as the near-term market is still heavily weighed down by high inventory levels and the warmer weather. |
For now it's off the radar screen. |
Fundamentals have been weak for the past couple of months because of the high inventories in the U.S. Prices have gone up because of a series of geopolitical events. |
Fundamentals have been weak for the past couple of months. |
Gasoline seems to be the main driver in the Asian market today . |
However, tension has relaxed a bit and the market came off. |
I can't see why it should have rallied $2 and I think it's coming back to reality -- that the short-term fundamentals look oversupplied, |