DMU: November 1, 2023
Analysis of the latest trends in oil and natural gas markets, including OPEC+ decisions, macroeconomic factors, geopolitical influences, and EIA inventory data.
On Today’s Daily Market Update:
Wednesday saw divergent trends in crude and product markets, with refining inputs losing strength and diesel prices rallying. The fluctuating diesel inventory remains a critical global concern. The Dec WTI contract experienced a decline, closing near $80.30, amidst unimpressive DOE stats and continuous market pressure.
Across the crude curve, uniform losses suggest producer selling might have influenced the downturn. Diesel led product gains, while gasoline faced a significant drop. DOE stats indicated a balanced week-over-week change, countering API's earlier modest draw prediction. Despite Middle Eastern tensions, including conflicts involving Israel and Hamas, oil markets showed little response. The FOMC's decision to maintain interest rates added another layer to the economic narrative.
In natural gas, price fluctuations persisted, with the Dec contract closing lower. Weather models offer mixed forecasts, impacting trading strategies and future market expectations, particularly in the context of potential shifts in storage and production dynamics.
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