Fundamentals likely dwarfed by bond markets inflows

Crude prices remained range-bound, at 74.5 $/b for the September ICE Brent contract, bond yields continued to slide lower, as the 10y Treasury bond touched 1.24% yesterday. However, this continued outflow from the commodity complex was balanced by strong fundamental data from the US. According to the EIA (detailed content here: Weekly EIA Report – Week to July 2nd), crude inventories dipped by 7 mb, while the US implied gasoline demand hit a historic high of 10 mb/d. US production surprised to the upside, with a 0.2 mb/d weekly increase, at 11.3 mb/d.

Looking at inventory data in Asia, total product stocks in Singapore declined by 1.8 mb, with gasoline stocks jumping by 1.5 mb, as mobility remained subdued in Asia. Distillates and fuel oil stocks declined respectively by 2.2 mb and 1.1 mb. Strong pulls on fuel oil stocks in Asia and the Middle East (via Fujairah) reflect a strong burning season.

Singapore oil products inventories
Singapore oil products inventories
Share this news :
Share on twitter
Share on linkedin
Share on email

You might also read :

April 8, 2021

No nasty surprise with the Fed minutes

The release of the Fed minutes did not have any significant impact on markets, as the overall message remained strongly dovish, in line with consensus…
January 6, 2021

Sharp price drop

European gas prices dropped significantly yesterday, both on the spot and the curve. Spot fundamentals were almost unchanged. Significantly below-normal temperatures continued to maintain residential…
January 13, 2022

EUAs tracked the bearish energy complex

The surging wind output and strengthening solar and hydro generation weighted further on the Euporean power spot prices yesterday, although the rather strong demand, especially…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter

Don’t have an account yet?  Sign up here!