SaxoTV

Hansen: Crude continues to fall ahead of US inventory report

470 views
October 28, 2015 commodities, commodities markets, commodities prices, commodities supply, commodities trading, commodity, commodity index, commodity investing, commodity investments, commodity market, commodity markets, commodity outlook, commodity prices, commodity strategy, commodity trade, commodity trading, commoditymarket, contango, crude, crude inventories, crude oil, crude oil price, crude oil prices, crude price, crude prices, crude spread, crudeoil, cushing, fomc, fomc meeting, fomc minutes, fomc preview, fomc rates, fomc statement, fomcmeeting, fomcminutes, fomcstatement, inventories, investment, oil, oil and gas, oil commodities, oil companies, oil company, oil demand, oil drop, oil gains, oil industry, oil inventories, oil market, oil markets, oil news, oil price, oil prices, oil production, oil range, oil refinery, oil spread, oil stockpiles, oil stocks, oil supplies, oil supply, oil trading, oil wealth, oilsupply, saxo, saxo bank, saxo tv, saxotv, stocks, supplies, supply, suppy, trading, tradingfloor.com, wti, wti and oil, wti brent, wti brent spread, wti crude, wti crude oil, wti crude prices, wti price, wti supply, wti us, wti vs brent, wticrude
Since last week’s US inventory report, the price of crude oil has been falling. That's because crude stocks rose by more than expected, explains Saxo’s Ole Hansen. 

The price has dropped further as the market focuses on this Wednesday's report. Hansen expects inventories to again be higher than anticipated but he says it's also important to look at gaseoline numbers which, until last week, had been rising. If the slowdown continues he believes it could alleviate some of the pressure from weaker demand.

A new pipeline between the WTI inventory hub Cushing in Oklahoma and Montreal in Canada could also help, he says.

Ole points out that contango in the market is now at its widest level in five months. Any change to high inventories could therefore have a positive impact on crude prices.