Brent oil was almost shockingly strong last night rising again to $36.96. It didn’t move much higher but the data flow was awful and it made no dent in the price whatsoever. Henry Hub gas, on the other hand, hit a new 17 year low at $1.67mmBtu:
What should have been the biggest blow to the oil rally was a titanic build in US crude stocks. What saved it was equally good US consumption, from John Kemp:
Main story in this week’s Weekly Petroleum Status Report is the continued strength of implied gasoline demand, which averaged 9.26 million b/d over the last 4 weeks, up almost +7% compared with the same period a year ago.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
