Tuesday, June 18, 2019
Today’s Market News
- Next OPEC+ meeting: On Monday Iran’s oil minister met their Russian counterpart in hopes of resolving an impasse over when the next policy meeting would be held. OPEC+ has been considering moving the date of their policy meeting in Vienna to July 3-4, however Russia’s Alexander Novak is in favor of moving the meeting to July 10-12 to avoid and clashing with the G20 discussions in Japan in late June. Iran’s Bijan Zanganeh disagrees with this date however said he could still attend.
- Last week’s tanker attack: Details are emerging that the attack on the 2 oil vessels last week were much more calibrated than originally thought. First reports indicated the ships were at anchor, however new information indicated the ships were moving. Additionally, the sophistication of the attacks damaged the ships without seriously injuring anyone. Tehran expressed its concerns however feels they are being made the scapegoat.
- Economic Reports: The Housing Starts report is due out this morning. Early indications are that the forecast is steady for May as April beat expectations for one of the best housing reports so far this year. Starts are expected to come in at 1.239 million annual pace vs. April’s 1.235 million. The consensus for permits is 1.290 million which would be unchanged from April.
- Market Opinion: The energy market is starting the day off mixed as there is not much for headlines to get going. OPEC+ is again moving their meetings around and is now set for July 10th -12th despite some against delaying it. Today’s API report will be in focus as Unites States shale production is expected to rise to a record 8.52 million barrels per day according to the EIA. If tomorrow’s inventory report confirms this bearish support, we could see WTI crude move lower and test the $50/bbl mark. Please reach out to your account manager for any contracting quotes for this Fall and next Spring.