The Energy Report - Let Me Take You On A Seaway!
By Phil Flynn | January 25, 2013 1:35 AM EST
A Seaway Glitch and the house passage of a short term extension of the debt ceiling and a reduction in the IMF growth forecast helped oil have its biggest drop of this New Year. The Seaway Pipeline that started to ease the glut of oil at Cushing Oklahoma leading to a rebound in West Texas Intermediate prices as oil greedy refiners took advantage of that new flow of crude. The release of that landlocked oil also brought in the Brent/ WTI spread by over $600 a barrel. Now with movement cut to 175,000 barrels a day versus the new level of 400,000 at the Jones Creek delivery point fears that the glut of oil in Cushing might build again. Yesterday it was reported by the American Petroleum Institute that crude supply in Cushing fell by 463,000 barrels.
Still the Brent / WTI spread long term still looks like it has topped. With an expected increase in North Sea production and a hoped for approval of the Keystone Pipeline the WTI should soon start to regain its stature as the world's best benchmark. Of course the break in oil is something readers of my energy report have been expected. Back in December we said that oil was near the low end of the range an that we would see oil target this range. Yet as refiners get ready to go into maintenance purchases of crude should dip as we start to move out of winter. Then get ready for the spring rebound as we get ready for summer! It's closer than you think! And besides in China the HSBC's monthly purchasing managers' index, which gauges manufacturing activity, rose for the fifth consecutive month in January to 51.9, up from December's 51.5. So demand in China should also stay strong after their seasonal dip. Oil fell yesterday after the IMF lowered its world growth forecast to 3.5 percent from 3.6 percent in October. The Passage of the debt ceiling also gave the dollar a better outlook and helped break gold and oil. Grains fell as the outlook for rain improved in Argentina. Silver ETF holdings have increased by 5% from the start of the year.
Open a Trading Account in 15 minutes - Here is the link to apply online: https://newaccount.admis.com/?office=269
Here is the PDF version: http://www.pricegroup.com/ADMIS/ADMIS%20Account%20Application.pdf
Most Popular Slideshows
- From Fat To Fit: Celebrities Who Were Overweight Before They Became The Beauties That They Are
- Kendall Jenner Could Be Next Victoria's Secret Angel [PHOTOS]
- Pope Francis: World War III Has Started On Piecemeal
- Champions League Results: Barcelona Barely Escapes With A Win, Chelsea Fails To Hold On To The Lead [PHOTOS]
Join the Conversation
- Google Nexus 6 Release Date on Q4 2014 Confirmed by T-Mobile Featuring Wi-Fi Calling
- 2 Reasons Nexus 6 Release Date is Worth the Wait: Android L Data Encryption & Material Design
- Samsung Galaxy Note 4 vs. BlackBerry Passport — Specifications, Features, Release Date And Price Showdown
- 3 Signs Apple iPhone 6 Could be in Short Supply Following its Sept 19 Release Date
- Australia Actively Rallying Support For International Coalition Against ISIS
- iOS 8 Jailbreak Release Update: Pangu Devs Will Outrace Evad3rs in Rollout of iPhone 6, iPad Unlocker
- Micromax Canvas A1 Vs Spice Dream Uno Vs Karbonn Sparkle V: A Choice On Which Android Is The Best