Oil and Gas Market Summary 9/14/16 from OilPricesDaily.com

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Hello and welcome bring you your daily recap of all the latest news, events and trends influencing oil prices. Oil prices daily is brought to you by EKT Interactive Oil 101 a free introduction to the oil and gas industry. Join over 3000 members of the oil window, one learning community today at www.ektinteractive.com.

OK, so let’s take a look at what happened today in the oil markets. September 14th, 2016. So another down day I’m down almost three percent. The October oil contract traded down a dollar 32 point nine percent to settle at 40 3:58. Trading volume was very strong with one point 5,000,000 futures contracts trading. So you know, really strong move on. Really good volume. Technically thing is really looking weak here as we pressure the lower end of our range is $43 is going to be a pretty critical support level here.

What happened today, EIA crude oil statistics came out and actually showed a slight draw. Just to recap, last week’s massive 14 and a half million barrel draw was thought to be a one off event caused by weather and so the market was expecting to see a build of at least 5,000,000 or so barrels this week, which of course you know, still would not have explained that huge draw in the knee jerk reaction to buy on that news has just been crushed market trading well below where we were treating men and if you look at the intraday chart and we’ve got it up for you in the oil prices daily newsletter today.

you can see when statistics came out that in the, you know, again that entered a bar, a spike of about a dollar as you know, the knee jerk reaction was to buy on that headline number and it just got massively sold into above $45 and came right back off and then continued to trade lower through the day and really ended at the lows of the session. So a very day on really interesting news. Of course you start seeing the headlines here, you know, oil falls on inventory data, you know, I’d really rather say that it fell despite the inventory data and really showed weak sentiment out there and people really concerned about the larger supply picture. And also, you know, we’re a global demand is right now.

So as far as looking for some reasons in this statistics, you can, uh, you know, you’ll see in some of these new stories, products did build a desal. It’s built and also the petroleum balance sheet put out by the EIA. Again, the link to that is in the oil prices daily newsletter. It did show that there was a bump up in us production. So you know, people taking a look at those, um, parts of the report and a really settling in on the short side here. You know, so if you look at, so if you look at the spreads spreads, not really wanting too much in the front on these moves as the front of the curve is moving together.

But you know, d’s 2016 versus these 2017 continuing to widen just two days ago was at $4 and I was at before 73, so that spread, you know, very heavily traded spread really on the move the last couple of days. So that’s about it. Nothing new out of OPEC, of course, the meeting approaches and we’ll keep an eye on that, but no real headlines out there on that today. Of course, curious, um, what these little prices do when you are doing to the, to the talks here, people are really going to be harder. So that’s it for me. Um, my travel plans this week will not allow me to put out another newsletter or podcast. So best of luck to everybody and we’ll pick it up again.

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