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20 May 2015
Combination of factors leads to another bad day in crude markets – Malcolm Graham-Wood
FXStreet (Barcelona) - Independent Analyst, Malcolm Graham-Wood comments on oil market performance and highlights the key factors behind yesterday's dismal performance.
Key Quotes
“Another bad day in the crude markets yesterday as a combination of continued dollar strength, absorption of Saudi export numbers and profit taking in WTI as the June contract expired. Indeed volumes of the next month July contract were noticeably higher than usual as traders saw more than usual rolling over of positions, not surprising considering the massive amount of open long positions at the moment.”
“Upward pressures at the moment might come from the better than expected GDP figures from Japan at 2.4%, a possible strike in the UK North Sea as the GMB and Unite unions protest about new working conditions and inventory reports from the US ahead of the Memorial Day holiday weekend.”
“The inventory figures are beginning to help out a bit, last night the API numbers showed another draw, this time of 5.2m barrels against a consensus of only 1m which shows that the analysts aren’t getting any better…Lets see how the EIA numbers look tonight.”
Key Quotes
“Another bad day in the crude markets yesterday as a combination of continued dollar strength, absorption of Saudi export numbers and profit taking in WTI as the June contract expired. Indeed volumes of the next month July contract were noticeably higher than usual as traders saw more than usual rolling over of positions, not surprising considering the massive amount of open long positions at the moment.”
“Upward pressures at the moment might come from the better than expected GDP figures from Japan at 2.4%, a possible strike in the UK North Sea as the GMB and Unite unions protest about new working conditions and inventory reports from the US ahead of the Memorial Day holiday weekend.”
“The inventory figures are beginning to help out a bit, last night the API numbers showed another draw, this time of 5.2m barrels against a consensus of only 1m which shows that the analysts aren’t getting any better…Lets see how the EIA numbers look tonight.”