Maybe it was appropriate that his last message to his subjects surrounded oil. Saudi Arabia's King Abdullah bin Abdul-Aziz died after a long bout with pneumonia, giving oil a boost even in the face of a soaring dollar and a historic step by the European Central Bank to move towards quantitative easing. While the new king Salman bin Abdul-Aziz Al Saud is sending signals that the Saudi oil policy won’t change, the uncertainty and controversy surrounding the Saudi oil policy is creating at least some uncertainty and support in global oil markets.
Continue Reading Below
King Salman is already signaling that Saudi oil policy will not change yet some critics of Saudi oil policy such as Price Alwaleed are hoping for a change. The big question is whether or not the new king wants to keep Ali Al-Naimi as Saudi Oil minister. There is a possibility that Ali Al-Naimi could be replaced as oil minister, especially because Mr. Naimi has been dropping hints about backing out of the role full time.
There is also a possibility tensions in the Middle East will intensify as terrorist and insurgents may look at this as an opportunity to cause more unrest. The King has done a good job in fighting insurgents in Saudi Arabia and has joined the war on ISIS. He did not get along with the Obama administration and criticized the President for his push towards Democracy in Egypt, which he said was a mistake.
The news of the Kings death brought oil off the lows. Oil prices were under pressure after the European Central Bank engineered a market rally. By exceeding their leaked amount of quantitative easing by 10 billion Euros, it gave the markets what they wanted and more! Forget any deadline on QE, the kicker was that the ECB head Mario Draghi said they would continue QE until they reached their 2% target rate. The way things look right now means that could be QE forever.
U.S. crude oil imports averaged over 7.2 million barrels per day last week, down by 274,000 barrels per day from the previous week. Over the last four weeks, crude oil imports averaged about 7.2 million barrels per day, 4.2% below the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 683,000 barrels per day. Distillate fuel imports averaged 268,000 barrels per day last week. U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 10.1 million barrels from the previous week. At 397.9 million barrels, U.S. crude oil inventories are at the highest level for this time of year in at least the last 80 years. Total motor gasoline inventories increased by 0.6 million barrels last week, and are well above the upper limit of the average range. Both finished gasoline inventories and blending components inventories increased last week. Distillate fuel inventories decreased by 3.3 million barrels last week and are in the lower half of the average range for this time of year. Propane/propylene inventories fell 3.6 million barrels last week but are well above the upper limit of the average range. Total commercial petroleum inventories increased by 2.4 million barrels last week.
Total products supplied over the last four-week period averaged 19.7 million barrels per day, up by 4.9% from the same period last year. Over the last four weeks, motor gasoline product supplied averaged over 9.0 million barrels per day, up by 8.7% from the same period last year. Distillate fuel product supplied averaged 3.9 million barrels per day over the last four weeks, up by 12.5% from the same period last year. Jet fuel product supplied is up 7.6% compared to the same four-week period last year.
Continue Reading Below
https://www.youtube.com/watch?v=EI1wUhBgaZ4&list=PLDq9JQANqxRxCBaHqunzBT4Frxitjw-XV&index=2 MarketWatch Says that I am a must follow in 2015 on Twitter! You can follow me on Twitter @energyphilflynn and you can also join me on Facebook. If you have any questions or if you want to get my trade levels for today call me at (888-264-5665) or Email Pflynn@pricegroup.com. Iif you want to start trading apply by hitting this link https://newaccount.admis.com/?office=269.
Version:1.0 StartHTML:0000000128 EndHTML:0000001777 StartFragment:0000000134 EndFragment:0000001770 SourceURL:about:blank
Past results are not necessarily indicative of future results. Investing in futures can involve substantial risk of loss & is not suitable for everyone. Trading foreign exchange also involves a high degree of risk. The leverage created by trading on margin can work against you as well as for you, and losses can exceed your entire investment. Before opening an account and trading, you should seek advice from your advisors as appropriate to ensure that you understand the risks and can withstand the losses.
The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or futures. The Price Futures Group, its officers, directors, employees, and brokers may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction. Reproduction and/or distribution of any portion of this report are strictly prohibited without the written permission of the author. Trading in futures contracts, options on futures contracts, and forward contracts is not suitable for all investors and involves substantial risks.