The Oil Man: Good and bad news for oil

WTI $60.96 +25c, Brent $64.89 +25c, Diff -$3.93 n/c, NG $2.73 -6c

A modest rally yesterday with some good and some bad news in the market. The good news was the announcement that February OPEC production fell again, this time to 32.2 million barrels per day which is indeed impressive even if Venezuela continues to involuntarily help out the cause.

The EIA inventory stats were, as expected here, poor. This time of the year US refineries are not falling over themselves to buy crude during routine seasonal maintenance, and the five million build was twice what the teenage scribblers expected.

However, the American driver always comes to the rescue and any signs of Spring tempts them into the gas guzzlers and gasoline demand rocketed, drawing 6.2 million barrels the highest for many months.

And finally…

In the Champions League Chelski had it all to do away in Barcelona and when King Lionel scored in the third minute it just got that much harder. Antonio Conte said afterwards that the result was ‘unfair’ but the little maestro made all the difference.

In the Boropa Cup tonight the Gooners host AC Milan and you would have thought that even Wenger’s men can’t mess this one up…

Malcolm Graham-Wood is an independent oil industry expert and freelance contributor, not a direct employee of Interactive Investor.

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