Is the energy market rebalancing?
Global equities continued to recover for the second day in a row. The EMI Global Equity Index increased by 0.73 % over the last twenty four hours with the year to date loss narrowing to 1.4 %. Six of the ten bourses in the Index remain in negative territory for 2015 even after yesterday’s rally. Canada remains at the bottom of the performance list with Paris now back on top of the leader board after relinquishing that position to China for a few days. Global equities were a positive price directional driver for the oil complex yesterday and contributed to the mid-day rally in oil prices.
The API released their data late Tuesday afternoon showing a surprise draw in total US crude oil stocks of 0.5 million barrels with Cushing inventories increased by about 1.3 million bbls on the week. The API reported a 0.2 million bbl build in gasoline stocks along with a 1.5 million bbl draw in distillate fuel. Total combined stocks in the API report showed a small decline.
Overall the API data points released were mixed with the market not reacting strongly in either direction in early overnight trading and ahead of Wednesday’s (10:30 am EST) EIA data release. Finally the EIA Nat Gas inventory report will be released on Thursday at 10:30 AM EST.