Oil Prices Fall On Glut Fears Despite Tighter Market
By Matt Smith
Feb 06, 2017
Rather than rallying like Tom Brady and the New England Patriots, oil today is instead dropping faster than Lady Gaga’s mic, ushered lower by a stronger dollar and ongoing expectations of an amply-supplied market. Hark, here are five things to consider in oil markets today:
1) While OPEC’s export loadings to Asia were strong in January, we are seeing much lower flows destined for North America. Although December’s loadings were boosted by strong volumes from Saudi Arabia, our ClipperData show that total loadings last month dropped below 3 million barrels per day for the first time since August, as OPEC seemingly favors keeping its Asian clients well-supplied.
That said, with U.S. oil inventories just 17 million barrels away from last year’s record level, and with refiners moving into maintenance season, there should be few concerns about a lack of supply.