Crude

BofA Stunned By Drop In Gasoline Demand: "Where Is Driving Season?"

US gasoline demand continues to surprise analysts by how weak it is. So weak, in fact, that Bank of America has released a note which has BofA's stunned energy analyst Francisco Blanch asking "where is the driving season?" and, more specifically, "Is this year's driving season over before it began?"

Weekend Reading: Oil & Retail Send A Warning

There are two important areas of the market that have historically been good leading indicators of the strength, or weakness, of the markets and the economy... Oil and retail.

US Oil Rig Count Rises But "Must Drop 150 For Oil Markets To Balance"

After falling for the first time this year last week, Baker Hughes reports US oil rig count rose once again (as perhaps Cindy impacted drilling last week) for the 23rd week in the last 24. However, there's a long way to go for the bulls as Morgan Stanley notes, "for a chance of a balanced market in 2018, the U.S. rig count can no longer grow and possibly needs to contract ~150 rigs."

Brent Tumbles To $46 Handle After US Crude Production Surge

Yesterday's "bullish" slump in inventories (and record demand) was offset by a resurgence in US crude production and along with Russia's lack of enthusiasm for more production cuts, is weighing heavily on oil prices this morning

Bond Rout Fades With Futures Flat Ahead Of Payrolls; Pound, Yen, Oil Tumble

S&P futures are little changed following yesterday's rout even as Asian and European markets continued selling; the pound slid on poor factory data, the yen tumbled after the BOJ intervened to stabilize the JGB bond market, precious metals flash crashed early in the session, while the selloff in oil accelerated despite yesterday's massive inventory draw, although at least yesterday's sharp bond tantrum has stabilized.

WTI/RBOB Jump After Major Inventory Draw Despite Biggest Production Surge In 6 Months

Oil bounced notably overnight after a surprisingly large crude build reported by API, but there was some selling in QTI/RBOB into today's DOE data, but that ended quickly as DOE reported major inventory draws across the board sending WTI spiking above $46. However, after last week's drop, US crude production (in the Lower 48) soared by its most in 6 months.

Global Bond Rout Sends S&P Futures, European Stocks Sliding

S&P futures are sliding this morning, down 0.4% and tracking the accelerating decline in European and Asian stocks, driven by a move higher in global interest rates, which started with Japanese 10Y yields rising to 0.1% for the first time since February, but mostly Bund yields which spiked after tripping stops, and jumped as high as 0.53% for the first time since early 2016.

WTI Bounces On Biggest Crude Draw Since 2016

Having broken its win-streak with the biggest drop in 4 weeks today following Russia comments, crude prices hovered around $45 as API reported a massive 5.8mm barrel crude draw (most since 2016) and 5.7mm gasoline draw (most in 4 months).

The Global Oil Demand Driver That Is Being Ignored

One of the hottest debates today is over the prospect of peak oil demand: whether or not electric vehicles along with general trends towards more fuel efficiency will ultimately lead to a peak and decline of total oil demand worldwide. But the conversation often overlooks the role that heavy trucks and freight play in driving demand.