Gasoline Futures Lead The Complex Higher
The American Petroleum Institute’s inventory report published yesterday afternoon is taking most of the credit for this morning’s positive sentiment in energy markets. Despite an estimated drop in crude oil stocks of around eight million barrels, gasoline futures are leading the complex higher with its 3.5 million barrel draw-down, easing COVID-induced demand fears.
The Department of Energy’s inventory report will be published at its regular time today, but may take a backseat, in terms of price impact, to news surrounding the OPEC+ meeting. While the general expectation is that the cartel stick to trimming supply cuts, rumors are gaining steam that “cheater” nations will be held to their production limitations going forward. A simultaneous increase/decrease in compliant/defiant member’s production could leave the global oil market with a net neutral change.
Hope may be on the horizon: Moderna’s COVID-19 vaccine showed positive responses from the first 45 volunteers it was tested on. Even though a vaccine viable for widespread use is still a long way off, as far out as 2021, equity markets are jumping on the good news and are set to open up big this morning.