Oil Plunges To November Lows On Sudden Volume Spike

Oil dropped to the lowest in seven months, with both Brent and WTI sliding to prices not seen since November, following a burst of volume just after 6am, amid a revival in output from Libya and rising volumes of fuel held in floating storage, although today’s move was likely yet another hedge fund capitulating and liquidating long positions. As a reminder, Pierre Andurand was down 17.3% through end of May.

Brent hit new year-to-date low at $45.85, after a one-minute burst of volume of a day-high 5,208 lots at 6:04am, taking out a 38.2% Fib support, after a one-minute spike in volume to a day-high 5,208 lots just after 6am. The move could spur a move toward the $44.66 measured support line according to Bloomberg technician Sejul Gokal.

West Texas Intermediate for July delivery, which expires Tuesday, was down 90 cents at $43.30 a barrel, the lowest since Nov. 14, having dropped as low as $43.22. The more-active August contract fell 85 cents to $43.58. Trading volume +61% vs 100-day average. August Brent dropped -87c to $46.04/bbl; sliding as much as $1.06 to $45.85, lowest since Nov. 18. Brent is trading at a premium of $2.45 to August WTI.

There were no headlines to trigger the move, which was driven by early orders from New York if anything. With 47 and 44 being respectively broken in Brent and WTI, it looks like the move may be triggered by stops according to Citi. For WTI, $43.76 was the intraday low ahead of the French election. API inventory data later today will be the next catalyst for oil prices, as the oil supply glut remains in focus. Citi Commodities Sales note, “It feels like were seeing some panic that we could shoot through the YTD lows here as we retest the levels seen last November pre the OPEC meeting, with decent volumes going through the market.”

According to CitiFX technicals, “we are in a clear down trend having made lower lows and lower highs for the past four consecutive weeks and it does not look like have hit a bottom yet. In fact, we actually got a bearish outside day yesterday. Next level to watch is the November low at 42.20, followed by the August 2016 low of 39.19.”

“It’s just ongoing negative market sentiment,” Commerzbank analyst Carsten Fritsch told Bloomberg. “The trend is your friend” unless of course you are a bull. Fritsch added that the market would need “a massive bullish surprise” from inventory data this week for sentiment to reverse

Among the reasons cited for the drop by Bloomberg, none of which are new, is that Libya is pumping the most crude in four years after a deal with Wintershall AG enabled at least two fields to resume production.

Additionally, offshore stores is rising with the amount of oil stored in tankers reached a 2017 high of 111.9 million barrels earlier this month, according to Paris-based tracking company Kpler SAS. With traders again storing more crude at sea amid swelling production in the Atlantic region and a widening contango, this confirms the market is far from rebalancing.

Ahead of tomorrow’s EIA report, consensus is that U.S. inventories probably shrank by 1.2 million barrels last week. Look for an API headfake after today’s close. Crude stockpiles remain more than 100 million barrels above the five-year average, according to data from the EIA. American production has climbed to 9.33 million barrels a day through June 9, near the highest since August 2015.

All the latest oil news courtesy of Bloomberg:

  • Libya is pumping about 900,000 barrels a day, according to a person with direct knowledge of the matter, who asked not to be identified for lack of authority to speak to the media.
  • Oil stored in tankers reached a 2017 high of 111.9 million barrels earlier this month, according to Paris-based tracking company Kpler SAS.
  • There were 5,946 drilled-but-uncompleted wells in U.S. oilfields at the end of May, the most in at least three years, according to EIA estimates.
  • Pierre Andurand’s oil hedge fund lost 17.3 percent in the year through May as one of the world’s most prominent energy bulls suffered in the wake of last month’s OPEC meeting, according to a document outlining the fund’s performance

The post Oil Plunges To November Lows On Sudden Volume Spike appeared first on crude-oil.news.

Arab journalists working in Qatar risk losing their citizenship

Following the decision by a number of Arab countries to block Qatar-based Al Jazeera news channel, the International Federation of Journalists (IFJ) has appealed to world leaders not to use journalists “as a political football”. The ongoing political dispute with Qatar has seen Al Jazeera being banned from Saudi Arabia, the UAE, Egypt, Yemen and Bahrain. Even Israel has made threats to close down the channel. Saudi Arabia has also introduced a fine of $2,700 for anyone caught watching Al Jazeera and imposed a $27,000 penalty on hotels airing the Qatari news channel. IFJ reported that 55 journalists from other Gulf States that are currently working at Al Jazeera in Doha are under pressure to leave Qatar or lose their […]

Cholera kills 1,146 Yemenis in 2 months

A cholera epidemic has killed some 1,146 people in war-torn Yemen since late April, according to the World Health Organisation (WHO). In a statement released yesterday, WHO’s Yemen office said over 166,976 suspected cases of cholera have been registered in the country since 27 April. The northwestern Hajjah province has recorded the highest number of deaths from the disease with 195 fatalities. Read: Cholera threatens 1.1m pregnant women in Yemen, warns UN The UN agency earlier warned that the three-year fighting in Yemen had destroyed the country’s health sector, making it difficult to deal with the epidemic. Impoverished Yemen has remained in a state of civil war since 2014, when Houthi rebels overran much of the country, including the capital […]

Paris: 4 family members detained after Champs-Elysees attack

Tue, 2017-06-20 03:00

PARIS: French police detained four family members of a man who was killed after ramming his car into a Paris police convoy, as authorities struggled Tuesday to explain how the Champs-Elysees attacker was able to keep his gun permit despite being monitored for links to extremism.
The Paris prosecutor’s office said Tuesday that the four suspects were detained overnight in the anti-terrorism investigation into Monday’s attack. The incident on one of the French capital’s busiest shopping and tourist districts rattled the city anew after multiple attacks targeting security forces.
Two police officials identified the attacker as 31-year-old Adam Djaziri from the Paris suburb of Argenteuil, and said he had been on police radar for ties to radicalism.
The prime minister said Tuesday that the man’s gun permit was initially issued before he was flagged to authorities.
Asked on BFM television why this attacker’s permit wasn’t rescinded, Prime Minister Edouard Philippe said that “if you take away a permit from someone who is the subject of surveillance or being monitored, he will quickly understand why it has been taken away. … It’s a difficult decision.”
Philippe dismissed appeals by gun clubs to have access to such surveillance information, saying that would hinder intelligence efforts that rely on secrecy to determine whether someone is plotting a crime.
Djaziri set off a fiery blast when he drove his car packed with arms and explosives into police, authorities said. Gendarmes jumped out of the vehicle, ran to the car, smashed its windows and pulled out the driver in an apparent attempt to save him, according to witness accounts.
No one else was injured, and the Champs-Elysees reopened overnight after being closed for hours for security measures.
The interior minister said the attack shows the threat level remains high and justifies an extension of a state of emergency in place since 2015. The government will discuss extending the measure through Nov. 1 at a Cabinet meeting Wednesday.

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Yemeni militias warn of attacks deep within Saudi Arabia

The Houthi militias and their allies among the followers of ousted President Ali Abdullah Saleh have warned that they will attack strategic military bases deep within Saudi Arabia that have been used to launch attacks against them in Yemen, Safa news agency reported on Monday. “The military choices for the army and the popular committees are open for carrying out responses in all fields in response to the crimes of the Saudi-American coalition,” said the spokesman of the militias, Sharaf Ghalib Luqman. “Today, our military capabilities are better than at any time previously. We are reinforcing the new reality on the ground aiming to undermine the movement and attacks of the enemy from all of its strategic military bases inside […]

EU to use economic sanctions against cyberhackers

Mon, 2017-06-19 12:10

LUXEMBOURG: The EU can levy economic sanctions on anyone caught attacking the member states’ computer networks, EU foreign ministers said, the bloc’s latest step to deter more attacks following incidents in Britain and France.
With German national elections in September, interference in democratic votes is a concern for the bloc after accusations of Russian meddling in the US presidential election last November and the French election in May.
EU foreign ministers agreed that so-called restrictive measures including travel bans, assets freezes and blanket bans on doing business with a person, company or government could be used for the first time.
“A joint EU response to malicious cyber activities would be proportionate to the scope, scale, duration, intensity, complexity, sophistication and impact of the cyber activity,” the bloc said in a statement.
A British intelligence agency has told political parties to protect themselves against potential cyberattacks, while the French government dropped plans to let its citizens abroad vote electronically in Sunday’s legislative elections because of the risk of cyberattacks.

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Orphaned Daesh babies returned to Sudan from Libya

Eight orphaned children of Daesh fighters have been transferred from Libya to their relatives in Sudan, the Sudanese Media Centre (SMC) confirmed on Sunday. A representative of the Sudanese community in Misrata, Moataz Abbas, said that the children; four boys and four girls between the ages of 10 months and nine years, had been living with their parents who were fighting with the militant group, Daesh, in Libya since 2015. According to SMC, the families became aware of the orphaned children after the Libyan Red Crescent informed the Sudanese Security and Intelligence Services. The parents of the children are believed to have been killed in fighting in the recapture of the town of Sirte in August 2016. Read: Dozens of former […]