Stockpiles, Pancakes and Cracks

Stockpiles of crude oil fell by 3.7 million barrels, more than double expectations of a decline of 1.7 million barrels – could be interesting when the EIA confirms the actual figure, perhaps giving some significant movement in a market that is making a pancake look bumpy.

OPEC and its allies sent mixed signals about whether they were considering deeper output cuts, fanning speculation before talks in Vienna. Iraq reiterated that the group should deepen its curbs, while a meeting of an OPEC+ advisory committee ended without any talks of steeper cutbacks.

No surprise there, they don’t really want to cut, they want to turn on all the taps and let it all flow out, but of course a price collapse would hit them all.

There still are huge risks in the wider world that could easily hit any part of the oil industry, and this can be seen in the fact that gold prices remained very close to one-month highs as those trade war worries kept underlying demand firm. Watch out at 3.30pm today or the EIA data, but apart from that the only thing moving with any interest is the crack.