Crude oil price (WTI and Brent) fell yesterday and will probably continue to do so as the week will progress. Today the EIA will issue its weekly report on petroleum stocks. Here is the main news pertaining crude oil price:
Crude oil price (WTI spot) fell yesterday by 1.77%, similar falls were recorded in WTI future price and Brent spot price. In total, the WTI spot fell by 7% during the month of January. Nonetheless, currently in Asia crude oil price is traded with moderate rises as speculation around China, Germany and US’s expected rise in demand than anticipated by analysts.
For now, this news could probably drive crude oil price up as the day will continue.
Furthermore, consider that the gap between Brent and WTI is, as of yesterday, at 9.48$/b – the largest gap in nearly two years. Bloomberg referred to this matter and pointed that there is a huge rise in demand for purchasing Brent future contracts. This is probably due to the backwardation of Brent future/spot that caused investors moving from WTI and into Brent contracts. As the backwardation will close the gap between Brent and WTI will probably also close, and we will see a decline in Brent price.
Today 15.30PM: The EIA will issue its weekly report on petroleum stocks, consumption and productions, according to the last report the petroleum stocks rose also by 0.1%, an increase of nearly 2.3 million barrels of crude oil; the report is expected to show a decline in petroleum stocks; See here the last report on petroleum stocks;
Here is a reminder of the rest of the reports that will be published today and could affect crude oil price (all times GMT):
13.30PM: the Department of Labor will issue its weekly report on US unemployment claims;
23.30PM: the Melbourne Institute will publish its MI leading index, which shows the changes in the economic activities in Australia and the expectations for the near future economic growth;
23.50PM: Report of Japanese Trade balance for the month of December.
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