30 Apr 2015
Oil supply glut to continue in Q2? – Malcolm Graham-Wood
FXStreet (Barcelona) - According to Independent Analyst, Malcolm Graham-Wood, the recent comments from BP and Shell suggest the second quarter might see crude reappearing in the market as they companies unwind the contango.
Key Quotes
“The oil price primarily tracked the weak dollar yesterday, rising as US GDP figures disappointed and rate hikes were postponed.”
“The EIA inventory stats also provided some succour for WTI, with the stock build being 1.9m barrels lower than the consensus of 2.3m. Whisper it very quietly but stocks at Cushing actually fell last week which is the first time that has happened for five months.”
“There is also a slight discrepancy appearing in the 1H/2H worldwide supply and demand picture, whilst 2H 2015 looks like seeing the potential for stocks being taken off the market which would be bullish for the oil price the results from the majors show a potential fly in the ointment.”
“BP and Shell have both reported that their trading departments have had brilliant quarters, being able to buy cheap crude and using their storage facilities to sell further out taking advantage of the contango. This does however mean that this crude will reappear in the market in the second quarter as they unwind the contango, but lets worry about that later shall we?”
“Also, with results today from Exxon, Conoco, Marathon and Phillips 66 and tomorrow from Chevron we may see more of the same.”
Key Quotes
“The oil price primarily tracked the weak dollar yesterday, rising as US GDP figures disappointed and rate hikes were postponed.”
“The EIA inventory stats also provided some succour for WTI, with the stock build being 1.9m barrels lower than the consensus of 2.3m. Whisper it very quietly but stocks at Cushing actually fell last week which is the first time that has happened for five months.”
“There is also a slight discrepancy appearing in the 1H/2H worldwide supply and demand picture, whilst 2H 2015 looks like seeing the potential for stocks being taken off the market which would be bullish for the oil price the results from the majors show a potential fly in the ointment.”
“BP and Shell have both reported that their trading departments have had brilliant quarters, being able to buy cheap crude and using their storage facilities to sell further out taking advantage of the contango. This does however mean that this crude will reappear in the market in the second quarter as they unwind the contango, but lets worry about that later shall we?”
“Also, with results today from Exxon, Conoco, Marathon and Phillips 66 and tomorrow from Chevron we may see more of the same.”