What's Moving the Oil Market

•Crude futures rebounded on Thursday, recovering from the selloff following the release of latest weekly US stocks data Wednesday. Although analysts said the stocks data was fairly neutral, the market latched on to stronger-than-expected builds in distillate inventories as a bearish signal, triggering the downward slide.

•"The dollar is slightly weaker today, however there are no real headlines out there," a London-based broker said. "People are possibly just buying back positions after yesterday's selloff." Despite the price recovery today, the risk of a downward move persists, especially given the lack of bullish headlines and overbought market conditions, analysts said.

•Looking at US stock data published by the EIA, while crude stocks built by only 200,000 barrels, far less than expected, and gasoline stocks dropped by 1.7 million barrels, distillate inventories increased by 1.4 million barrels--slightly above expectations. Given the tight supply/demand balance for distillates globally, that figure was enough to send prices down, at least temporarily.

Updated: May 15, 2008

This content first appears in Platts Oilgram Price Report. Platts Oilgram Price Report is a daily report that covers market changes, market fundamentals and factors driving prices. Platts Oilgram Price Report also brings a vast array of Platts international prices for crude and products, netback tables, and market critical data. Subscribe now to Oilgram Price Report, or click here to request a trial.

Platts What's Moving the Oil Market What's Moving the Oil Market 5/15/2008

printer friendly version Printer-friendly format

About Us Contact Us Client Services Help For Advertisers

Privacy Notice McGraw-Hill Privacy Policy Terms & Conditions