Oil and Gas Market Summary 9-22-16 from OilPricesDaily.com

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OPEC in new push to clinch first deal to curb output since 2008 Reuters

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Transcript:

Hello and welcome to the Oil Prices Daily Podcast. Doug Stetzer here bringing you your daily recap of all the latest news, events and trends influencing oil prices.

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All right so let’s take a look at what happened for today, September 22nd, 2016.

As we mentioned in yesterday’s podcast, after the market closed news from the Fed came out that they were leaving interest rates unchanged.

We kind of saw what we anticipated a little bit, financial markets were strong coming into today on that news, oil prices were able to maintain their upward trends started after yesterday’s inventory report and the dollar weekend was a pretty major supporting factor in today’s oil prices.

What happened November crude traded higher by 98 cents or 2.2% at settled at 46.32.

Here again, following through on the theme for the last couple of days. The market punched down towards $43, couldn’t really hold below there and has had a nice four day rally back up above 36, but still seeing resistance coming in around 47 as far as trend line resistance on this channel that we’ve got going on and $48 from previous highs.

We’ll see if we can, I wouldn’t consider this broken out of the downtrend at this point.

Still some ways to go and we’ll see if anything coming out OPEC changes that. Right now hopefully on the side of the bulls, we’ve hot a lot of OPEC headlines in their favor.

They’ve got EIA draws in their favor. Now of course do you see these recent EIA draws as really changing the global supply picture? I don’t think so, however on the side of pushing things higher.

Stories today again kind of focusing on the Fed. That was really the big news last night or yesterday afternoon rather and lent support across the board.

If you do look a the markets, crude was pretty much strong throughout the day. It was pretty volatile, sat at the top of the range, really most of the day. It rallied in the morning, hit a high around just about 46.50, and settled on a little bit of a down tick but not by much.

Really interesting thing I noticed today is if you really look at the whole crude curve, not just the front month, the whole curve really moved up evenly just up a dollar, basically.

If you look at the spreads, they’re pretty much unchanged. What you would expect to see is them tightening up a bit as the front rallied perhaps more than the back. Really though, the whole curve moved up pretty evenly so a little bit interesting.

Triggers’ taking the perspective that this move was just as strong in the back.

OPEC, not too much news out of there. Everyone’s in wait and see mode on OPEC. One interesting story I saw on Reuters, OPEC in new push to clinch first deals to curve output since 2008, and again this link will be in the newsletter. I thought the first sentence of this article was interesting.

It says, as far as OPEC decision making is concerned, Algeria, which plays host to oil ministers next week, has always been the land of surprises.

They go on to point out that the last two meetings of OPEC held in Algeria in 2004 and in 2008, both ended with surprise, unexpected production cuts to prop up prices.

Really a pretty quiet day for news. All eyes on the dollar and on whether this rally can sustain itself.

That’s going to be it for today.

Make sure you get our concise recap of all the news and events influencing oil prices each day by subscribing at oilpricesdaily.com and of course you can also subscribe to this podcast on iTunes.

Thanks a lot. Talk soon.

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