New records for oil markets

The oil markets recorded further record highs yesterday with WTI hitting $123.93 (€157.89) and Brent up to $122.37 during the respective trading sessions.

The much-anticipated EIA data delivered a set of bearish numbers with crude stocks leaping by 5.7mio bbls. Gasoline stocks also rose with a draw in distillates. The rise in oil prices has been attributed to this draw in distillates particularly diesel and heavy fuel oil which are seen to be in short supply globally.

On the face of it overall this data should have precipitated a pullback but clearly the market is ignoring the fundamentals and powering ahead. The oft-cited inverse correlation between rising oil prices and a falling Dollar is being ignored with the greenback rising to an eight week high against the Euro with no corresponding softening in oil prices.

Clearly the current spike in oil prices has been sharp and furious and with little in the way of fresh impetus and lack of supporting fundamentals a retracement must surely be on the cards. That said, in current conditions it is difficult to call exactly when the bearish elements will prevail. More importantly, the key issue is how far that pullback will be, with oil prices below $100/bbl (€82.83) at this stage a dim and distant memory.

More in this Section

UK Ryanair flights take off as normal despite pilots’ strikeUK Ryanair flights take off as normal despite pilots’ strike

Here are the 9 steps for businesses to take to prepare for BrexitHere are the 9 steps for businesses to take to prepare for Brexit

Tesco ‘could ban brands’ with excessive plastic from shelvesTesco ‘could ban brands’ with excessive plastic from shelves

Around 50 SMEs see sales rise by more than €1m in four months in eBay pilot programmeAround 50 SMEs see sales rise by more than €1m in four months in eBay pilot programme


Lifestyle

Kylie Jenner’s best friend has teamed up with a global retailer on her first collection.Who is Anastasia Karanikolaou? The Instagram megastar who has just launched a fashion range

The trials and tribulations of bringing babies along for the ride.5 baby-friendly destinations for your first family holiday

Audrey's been sorting out Cork people for ages.Ask Audrey: 'There's a shortage of handsome, clean men, so I’m seeing a guy from Kanturk'

A beloved part of many an Irish childhood, the artist, author, and environmentalist Don Conroy tells Donal O’Keeffe why he loves his ‘abusive’ friend Dustin the Turkey, why big men hug him at festivals, and why he worries for Greta Thunberg.Art of the matter: Don Conroy on why he worries for Greta Thunberg

More From The Irish Examiner