Gas Oil 1 year $/TonneMonday 24 June, 2019
The fundamentals for kero / diesels actually weakened last week with lower demand offsetting lower stocks resulting in a rise in the days cover of 2.1 days to 31.5. Demand growth remains weak in the US and stocks should continue to rise over the next couple of months. However, prices are been pulled up by rising tensions in the Middle East and with the short term graphs looking oversold the risks remain to the upside.
Gasoline 1 year $/TonneMonday 24 June, 2019
Last week was not a good for gasoline with prices bid higher due to increased Middle East tensions and a massive fire at a large US oil refinery. On Friday a massive fire and explosions ripped through a 335,000 bpd refinery in Philadelphia. Combined with the driving season heading into peak demand in 10 days with the 4th July holiday, and the short term graphs oversold, the risks are to the upside.
Crude 1 year $/TonneMonday 24 June, 2019
The price of crude increased sharply last week following the downing of an $130 million US spy drone in the Middle East in the vicinity of the Straits of Hormuz. As a result Brent Crude bounced off support at $60/b and is now testing resistance at $65/b. Prices are also finding support from a fall in US crude stocks of 3.1 mb on the week although the fall was offset by lower demand. With tensions high in the Middle East and the short term graphs looking supportive the outlook for crude looks firm.
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