Author: David Cohen

Oil prices traded down today as fuel demand continues to be a concern and the chorus of warnings grows. Three of the world’s biggest independent oil traders said consumption won’t meaningfully recover for at least another 18 months.

Prices were steady for the day as a weaker dollar and strong equities supported crude prices. Coronavirus continues to weigh on prices as some Midwest states have seen a 25% jump positive COVID-19 tests, and the number of new infections nationwide have grown to an average of 46,000, compared with 35,000 daily two weeks ago.

“There’s a lid on this market to the extent that COVID-19 keeps rearing its ugly head in different spots,” said John Kilduff, Partner at Again Capital.

The four-week average gasoline demand was down 9% year over year for last week.“Prices remain vulnerable despite the fact that they have settled as the week has progressed,”

Oil prices rose today as crude, gasoline, and distillate inventories all fell last week according to today’s EIA report. US crude inventories fell by -1.64 MM/bbls, slightly less than the forecast of a -2.07MM/bbl draw.

As any new restrictions will likely be more localized, the oil demand recovery should still continue, although at a slower pace with the easiest demand gains behind us

Oil prices continued their rise today as energy companies return crews to offshore platforms in the Gulf. Prices reversed earlier losses turning positive for the day as Saudi Arabia forcefully cracks down on OPEC+ member countries that failed to comply with their planned cuts.

Oil prices had their best day since June after a mostly bullish EIA report and Hurricane Sally’s impact taking roughly 500K/bpd of production offline.

Oil prices rose for the day on the back of hurricane Sally’s expected landfall in the Gulf.

Crude oil prices continued their decline as yet another storm brews in the Gulf. “The storm is taking production offline in the Gulf of Mexico, and the market doesn’t care – that shows just how bad the situation is,”