OPEC and inventory data should put downward pressure on prices later today.
Prices haven?t fallen by much because of the heavy refinery maintenance seen around March, which still raises some concerns over supply particularly for gasoline.
Right now the market supply for oil is tight.
Slower growth in producer prices makes China's exports more competitive, which means the nominal exchange rate can be allowed to appreciate without hurting exporters.
Slower U.S. growth may reduce growth in oil demand in the second half of the year. We are seeing proof of reduced U.S. consumer confidence.
Supplies of heating oil are very low compared to other supplies of energy commodities.
The big one-day drop on Wednesday was a reaction to the stronger-than-expected build in crude and product stocks, while demand remained weak.
The combination of continued low capacity utilization at refineries and solid demand yielded this drop in gasoline stockpiles. So, gasoline prices rose and pulled everything else higher.
The events seem to be moving into a confrontation and the market is afraid what it will do to supply.
The gain in oil prices was a by-product of what happened to the gasoline inventories.
The geo-political risk premium is already fully priced at the level we closed at yesterday.
The geopolitical risks are still there. Because of these risks, I expect crude prices to rebound.
The hurricanes which battered the U.S Gulf Coast did not have the impact on the labor market as was earlier expected.
The IAEA meeting is paramount in investors' minds, because it has the potential to alter the demand-supply equilibrium.
The IAEA meeting is paramount on investors' minds, because it has the potential to alter the demand supply equilibrium.
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