Energy Complex Up Modestly
The energy complex is up modestly this morning on news that OPEC is estimating a drop in the surplus of oil supplies in 2020, which may render further production cuts unnecessary. While claims originating from the cartel are usually best seen before believed, a wandering market is easier to guide higher rather than lower. Official word on the subject is expected at their next meeting on December 5th and 6th.
That was also the case yesterday as we saw a reversal of early morning selling after Chair of the Federal Reserve Jerome Powell delivered his rosy outlook on the economic state of the nation to Congress. Equity markets edged out all-time highs yesterday leaving some to wonder ‘what ever happened to the recession?’
The American Petroleum Institute posted a surprise draw in crude oil inventories for the week ending 11/8, showing the nation’s stockpiles over half a million barrels lower. If the DOE confirms a drawdown at 10am CST, that could combine with further bullish soundbites from Powell’s second day of testifying to give today more buying pressure than we’ve seen all week.