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Tag Archives: WTI

New US oil pipelines cause shift in regional price dynamics

The second new crude pipeline in as many weeks has started moving oil from West Texas to the US Gulf Coast, adding to the pool of available light sweet in the region and squeezing the price spread between the two locations. EPIC Crude Holdings said August 19 that its 24-inch-diameter EPIC interim crude line has begun delivering crude from the Permian Basin to various terminals in Corpus Christi and Ingleside, Texas. The line has the capacity to deliver up to 400,000 b/d and is expected to...

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Commodity Tracker: 4 charts to watch this week

In this week’s pick of commodity and energy market trends, gold and copper prices send signals about the global economy, and US oil infrastructure build-out affects the price relationship between WTI and Brent crude prices, S&P Global Platts editors report. 1. Gold and copper track diverging paths as economies stutter   What’s happening: Gold is rallying in the face of a deteriorating economic outlook, while copper is getting hammered on the same metrics. Copper has fallen...

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US Industrial Downturn: What If Oil and Inventory Join It?

Revised estimates from the Federal Reserve are beginning to suggest another area for concern in the US economy. There hadn’t really been all that much supply side capex activity taking place to begin with. Despite the idea of an economic boom in 2017, businesses across the whole economy just hadn’t been building like there was one nor in anticipation of one. The only place where there was a truly robust trend was the oil patch. Since the last crash a few years ago, Euro$ #3, the oil sector...

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COT Black: Not Transitory, The Landmine In Crude Means A Lot More Than Crude

Supply glut or demand disappearing? We are back to asking that question again after four years. In late 2014 and early 2015, the conventional answer was shale. The US had begun producing so much oil there was a glut of supply. Without an outlet for it, all the crude began building up primarily in Cushing, OK. All that was true but also never came close to explaining the oil crash. What changed wasn’t supply it was demand. The oil futures market had known about the onrush of additional crude...

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Copper And Oil Walked Out On The Last Puppet Show

Where have you gone, green shoots? The Fed turned dovish, a bunch of transitory factors, and, above all, so much Chinese stimulus. That’s what got everyone through the winter. Markets were truly harsh to end 2018, a sharp slap in the face after all year the unemployment rate. One of the big ones that seemed evidence for green shoots was copper. Once the Fed “pause” was finalized in whispers, this one commodity price began its resurgence. And it wasn’t alone, either. Copper was joined by oil,...

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Inflation Falls Again, Dot-com-like

US inflation in January 2019 was, according to the CPI, the lowest in years. At just 1.55% year-over-year, the index hadn’t suggested this level since September 2016 right at the outset of what would become Reflation #3. Having hyped expectations over that interim, US policymakers now have to face the repercussions of unwinding the hysteria. Live by oil, now die by oil. The process has been exactly the same in each month. The energy component once amplifying the headline has turned around to...

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COT Black Is Partially Back With A Lot of Towels

The Commodity Futures Trading Commission (CFTC) is in a bit of a tough spot. Being subject to the federal government shutdown meant shutting down the various Commitment of Traders (COT) reports for all the products listed on the exchange. There are a lot of them. Though the government and therefore the CFTC has reopened, it is going to be some time before they catch up (assuming they can before the next shutdown). The plan is for two releases per week in chronological order until that gets...

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Chinese Robots, New York Heartburn, and Goldman Sach’s Central Role

In the continued absence of regular data, as the US federal government attempts to get back up to speed before the next lull, it is perhaps appropriate to continue on with this week’s parade of anecdotes. Here I’ll discuss three of them, each seemingly unrelated to the others. To begin, we start with Chinese robots. It is the age of great economic uncertainty. Nobody really knows why, and in the absence of any explanation people will fill in the blanks with their imaginations. One nightmarish...

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In the LOOP: Drop in US crude freight rates entices Asian buyers

US light sweet crudes such as WTI Midland and Bakken have been offered into Asia at lower premiums in recent months amid a drop in freight rates from the US Gulf Coast to the Far East, sources in Asia said Monday. Taiwan’s CPC was heard to have bought 4 million barrels of WTI Midland crude from an unknown seller for March Loading. The cargo was priced around a $2.25/b premium to Dated Brent on a CIF Taiwan basis. CPC seems to enter the US Gulf Coast market when prices are ideal. The...

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Shutting Down Inflation

The US federal government is shut down and certain economic data accounts are being left to go without scheduled updates, things like US trade provided by the Census Bureau. The Bureau of Labor Statistics’ more watched series aren’t among the forgotten, however. The monthly payroll report would be compiled and released even during a nuclear attack. Yes, it really is WWIII but did you see the blowout jobs figures! I have no doubt that Jay Powell wishes the BLS’ CPI was being treated like...

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