Oil Fundamental Analysis – week of September 5, 2016

Crude Oil closed the crazy week at 44.22 down 9ver 7% for the week as increased EIA inventory and the likelihood of an agreement at the Sept OPEC meeting fading. Brent oil was down 6.5% at 46.63. Moving into the new week which will start off with the US on holiday WTI is a strong sell as US producers continue to hit record highs and inventories climb. Investors focused on Wednesday’s government data showing a 2.3 million-barrel build in U.S. crude stocks in the last week, more than double what the market had expected. Inventories of distillates, which include diesel and heating oil, rose nearly 10 times as much as forecast, the data from the U.S. Energy Information Administration showed.

Oil prices rose as much 11 percent in August, posting their best monthly return since April, on speculation that the Organization of the Petroleum Exporting Countries and other producers might agree on curbing output at Sept. 26-28 talks in Algeria. Russia is also expected to attend the IEF.

But many investors doubt OPEC will be able to agree a common position on production and prices have fallen in recent days. Many past efforts to restrict production have failed and OPEC is responsible for only around 40 percent of world output.

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WEEKLY

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

Gasoline and Diesel Fuel Update
Release Schedule: Monday between 4:00 and 5:00 p.m. EST (schedule)

Weekly Petroleum Status Report
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This Week’s Economic Events That You Should Be Monitoring:

 Government Bond Auctions

Date Time       Country           Auction

Sep 06 11:00 Austria Holds bond auction

Sep 06 11:30 UK 1.5% 2026 Gilt

Sep 06 11:30 Germany Holds I/L bond auction

Sep 07 10:30 Denmark Holds bond auction

Sep 07 11:03 Sweden Holds bond auction

Sep 07 11:30 Germany Eur 5bn 0% Aug 2026 Bund

Sep 08 11:00 Ireland Holds bond auction

Sep 08 17:20 Italy Announces details of bond auction