EIA and other action

EIA numbers were Bearish as Demand moved lower and Supplies moved higher. 2 minor Bullish metrics may limit the downside.Cushing stocks had a larger than consensus draw  and  gasoline stocks in NY harbor,Delivery point for contract, reported a draw.This may limit the downside in prices.Distillates  Stocks were higher than consensus both nationally and on the  east coast,prices should find it hard to move higher.Refinery demand measured by refinery inputs was lower but by a slim.38%  but none the less lower.Oil continues to move lower and squeeze the longs.

Lower oil appears to  provide a bid into long end treasuries as they continue to move higher  and Steepen the yield curve.Inflation and inflation expectations more a feature for Long end pricing then the short.Spoos moving lower and trade appears to be one of “risk Off” and not one of fed rate expectations.Spoos have just traded below prior 2 days Pit lows.September probabilities for rate hike are down 2% vs. yesterday’s Close.I wouldn’t get too  wrapped up in  the “theme ” for today’s trade as  Month end machinations probably the culprit.Lower Oil having  a big  impact  on todays trade CL -2.5%. I guess if Ihad to choose a theme it would be Lower oil causing a risk off move.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.