Crude & Brent Oil Fundamental Analysis – November 4, 2015 – Forecast

Analysis and Recommendations:

Crude Oil added 34 cents to 46.48 while Brent Oil outpaced crude gaining 42 cents to 49.22 as global manufacturing figures on Monday were slightly better.  Oil prices rebounded in Asia on Tuesday, buoyed by bargain hunting ahead of the release of US government data that will gauge crude demand in the world’s biggest economy.

Analysts expect the data to be released on Wednesday by the US Energy Department to show that commercial crude stockpiles rose in the week to October 30 which typically means weaker demand in the world’s top oil consuming nation.

Despite occasional rallies, oil remains generally bogged down by a global crude supply glut that has outpaced demand and depressed prices for more than a year. “Expectations of more US stockpiles restrained oil bulls,” said Bernard Aw, market strategist at IG Markets in Singapore.

A global economic slowdown led by China has hammered demand for the commodity and highlighted worries that there may not be enough economic activity to soak up excess supplies as output levels from oil producing nations remain high. China’s official purchasing manager’s index for the manufacturing sector showed activity shrank in October for the third straight month.

It’s all about supply,” said Michael Hewson, analyst at CMC Markets. “Oil’s going to remain under pressure, with inventories likely to expand and the potential for Iranian supply to come on stream in the next few months.” Also adding to the supply glut, Gulf oil producers are delaying some field maintenance until next year to keep production high and reduce costs as they forecast ongoing low oil prices in 2016.An expected dip in U.S. oil production as a result of low prices is unlikely to significantly dent a glut, which is seen remaining at 1-2 million barrels per day on average for 2015.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

WEEKLY

This Week in Petroleum
Release Schedule: Wednesday @ 1:00 p.m. EST (schedule)

Gasoline and Diesel Fuel Update
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Weekly Petroleum Status Report
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Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Wednesday, November 4, 2015

Government Bond Auctions

Date Time Country

Nov 03 10:10 Austria Holds RAGB bond sale

Nov 04 15:30 Sweden Announces details of Bond on 11 Nov

Nov 04 N/A Holland Announces details of Bond on 10 Nov

Nov 05 09:30 Spain Auctions Bonos

Nov 05 09:50 France Auctions OATs

Nov 05 10:03 Sweden Holds I/L bond auction

Nov 09 12:00 Norway Details bond auction on 11 Nov

Nov 09 15:30 Italy Announces details of BTPs/CCTeu on 12 Nov

Nov 09 N/A US Holds 3-year note auction

Nov 10 10:30 UK 0.125% 2058 I/L Gilt auction

Nov 10 N/A Holland Eur 2.0-3.0bn 0% Apr 2018 DSL

Nov 10 N/A US Holds 10-year note auction

Nov 11 10:03 Sweden Holds bond auction

Nov 11 11:15 Norway Holds bond auction

Nov 11 10:30 Germany Eur 3bn 0.25% Oct 2020 Bobl

Nov 12 10:10 Italy Auctions BTPs/CCTeus

Nov 12 10:30 UK 4.25% 2039 Gilt auction

Nov 12 N/A US Holds 30-year bond auction