Malcolm Graham-Wood
Independent Analyst
The oil price rise yesterday was based on industry rumour that Opec and non-Opec would get together and cut production, even the USA were being talked about as cutters. In that regard nothing could be further from the truth and I understand it would be illegal in that country. Venezuela keep popping up, yesterday saying ‘stop this madness’ which is all very good but they have no constituency, maybe they havent realised that the market share game is designed to take higher cost producers off the market, of which they might be one…
The API stats come out after the market shuts and so it is no surprise that the oil price, particularly WTI has fallen sharply this morning. A build of 11.4m barrels, despite a small draw at Cushing was way higher than forecasts and gasoline added 4.08m barrels against expectations of 1.5m. (WTI is $30.31 as I write)
Finally the EIA released this last night so I will quote verbatim for those interested in the nitty gritty.
Changing contract expiration dates will affect crude oil futures comparisons
A change to the North Sea Brent crude oil futures contract will alter the way prices for Brent futures are compared to futures prices for WTI crude oil. Beginning January 29, the Brent contract will expire, or rollover to the next month, approximately two to three weeks before expiration of the WTI contract for delivery in the same month. Prior to the change, the Brent contract rollover was only five to seven days ahead of the WTI rollover.
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