Oil Fundamental Forecast – September 12, 2016

Crude Oil reversed gains to trade at 46.89 as traders booked profits from yesterday’s rally. Brent Oil fell 84 cents to 49.15. Observers are turning bearish with worries continuing over sluggish global demand growth and increased supply. The situation has led analysts at the New York-based Morgan Stanley to admit that conviction levels for the market being rebalanced by mid-2017 are now falling.

The bank said in a note that additional unexpected supply from producers such as Iraq, Libya, Nigeria and the U.S. could derail hopes for the market rebalancing. Meanwhile the Organization of the Petroleum Exporting Countries and Russia are maintaining the production-freeze talk ahead of a meeting on the subject in Algeria on Sept. 28. But any deal would have to overcome major obstacles, including Iran’s refusal to consider a production cap until it hits pre-sanction levels.

“We are in the hurricane season, and last week’s storm caused production disruptions and import delays,” the Zurich-based Julius Baer bank said. “Gulf of Mexico oil and gas operations have largely resumed and tankers are queuing for offloading. The storage decrease is set to be a one-off, likely offset by large increases next week.”

FxEmpire provides a wide variety of analysis on a daily, weekly and monthly basis ranging from our exceptional technical analysis as well as our in-depth fundamental analysis along with our daily news and market updates. To get the best understanding of each asset it is important to review the short term daily analysis with the longer term monthly reports. To get email notification when each of these are posted please sign up for our daily newsletter.

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
Release Schedule: The wpsrsummary.pdf, overview.pdf, and Tables 1-14 in CSV and XLS formats, are released to the Web site after 10:30 a.m. (Eastern Time) on Wednesday.

Upcoming Economic Events that you should be monitoring:

 September 12, 2016

Government Bond Auctions

Date Time Country Auction

Sep 12 11:30 Germany Eur 2bn Mar 2017 Bubill

Sep 12 13:00 Norway Details of bond auction on Sep 14

Sep 13 11:00 Netherlands Eur 2-3bn 0% Jan 2022 DSL

Sep 13 11:10 Italy Holds bond auction

Sep 14 11:05 Norway Holds bond auction

Sep 14 11:30 UK 0.125% 2046 I/L Gilt

Sep 14 11:30 Germany Eur 1bn 2.5% Jul 2044 Bund

Sep 15 10:30 Spain Holds bond auction

Sep 15 11:03 Sweden Holds I/L bond auction

Sep 15 11:50 France Holds bond auction