Crude Oil 9th November

Oil touched highs on Friday and Monday but failed to sustain those
gains. But a net net rise in oil prices for the last two days happened
despite decent rallies in Dollar on both days. Equity market also
touched highs on these days. Euro has shown immense weakness over the
last few days owing to a renewal of Debt threats over the Euro-zone
countries. The government papers of the PIIGS nations saw massive
selling over the last few days. Renewed uncertainty has pumped the
yellow metal once again and Gold has made new highs over the weekend.
A continuation of this renewed development might put oil in a confused
state as to which direction to move. A further weakening of Euro will
pump up Dollar, thereby killing oil's financial incentive to go up.
Oil had a massive sell off last time when the Eurozone debt crisis
flared up.
Inventory expectations were released last night.
A 1.4 million barrel build is once again expected in the crude
inventories. Products are once again expected to draw by more than a
million barrels.
Refinery utilization has reached 81 percent utilization; this is a
substantial draw in refinery margins and a further weakening might
impact the crude prices negatively.
Forties had a weaker day monday. It slipped to 25 cents discount to
dated Brent when compared to 15 cents on Friday. Today we will see the
loading programs release one after another. Watch out for the Forties
loading program as it has the potential to move the spreads.