What's Moving the Oil Markets?

What's Moving the Oil Markets?

•"Futures seem to be rangebound either side of the $70/barrel mark and there is real weakness at the moment because of high product stocks in the US and disappointing demand," said a broker. "Demand for crude outside the US is something that could support a sustained rally because crude demand in the US is limp at the moment and for most people this means keeping an eye on increasing demand from China."

•On Wednesday, the July contract lost $1.28 in value pushing it below the $70/barrel range after the market interpreted the latest Energy Information Administration inventory data as bearish particularly the 2.1 million barrel increase in gasoline stocks and the 2.5 million build in distillate stocks.

•Other news weighing heavily on the market is the news that OPEC are expected to maintain the current 28 million b/d ceiling. The oil minister of host Venezuela suggested earlier this week that OPEC should cut output given market fundamentals and healthy stocks but there have been no calls for a cut from other OPEC ministers.

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