Free Trial
PIPELINE

$500M Norfolk Southern 10Y Launched

US

FED Reverse Repo Operation

GBPUSD TECHS

Trend Needle Points North

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Prices Range Bound Again On Difficult Political Environment

OIL

Oil prices have been trading in a tight range. Even the short-lived bounce in reaction to reports of a Russian-made missile exploding in Poland didn’t break out. WTI has been between $87.50 and $86.35/bbl and is now at the lower end of the range on the back of USD gains. Brent traded between $93.40 and $94.10 and is now around $93.40. Prices are about 0.5%below the NY close.

  • US API data showed that the previous week’s build in crude was more than unwound in the latest week with stocks falling 5.835mn bbl. Distillate stocks rose slightly by 0.9mn bbl and gasoline by 1.7mn.
  • The IEA noted in its November report that crude inventories in developed countries were at their lowest since 2004, making them vulnerable to further supply disruptions. It also reported that OPEC+ output remains more than 1mbd below the quota.
  • Tight supply conditions balancing uncertainty regarding the demand outlook continue to keep oil prices range bound. Deterioration in the situation in the Ukraine could increase supply fears and reopening in China could improve the demand outlook and thus push prices higher again.
183 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Oil prices have been trading in a tight range. Even the short-lived bounce in reaction to reports of a Russian-made missile exploding in Poland didn’t break out. WTI has been between $87.50 and $86.35/bbl and is now at the lower end of the range on the back of USD gains. Brent traded between $93.40 and $94.10 and is now around $93.40. Prices are about 0.5%below the NY close.

  • US API data showed that the previous week’s build in crude was more than unwound in the latest week with stocks falling 5.835mn bbl. Distillate stocks rose slightly by 0.9mn bbl and gasoline by 1.7mn.
  • The IEA noted in its November report that crude inventories in developed countries were at their lowest since 2004, making them vulnerable to further supply disruptions. It also reported that OPEC+ output remains more than 1mbd below the quota.
  • Tight supply conditions balancing uncertainty regarding the demand outlook continue to keep oil prices range bound. Deterioration in the situation in the Ukraine could increase supply fears and reopening in China could improve the demand outlook and thus push prices higher again.