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EMEA Wekly Base Oil Price Report 20.11.19

EMEA Base Oil Price Report

BY RAY MASSON

Base oil prices around the European, Middle Eastern and African markets are muted due to a mounting oversupply situation that is growing by the day. Supplies of all groups are ample to cover immediate and forward requirements into the first quarter of next year.

Group I prices are approaching a critical point where raw material costs overtake selling prices, causing some sellers to comment that they would rather not produce base oils. Some have declared that they will stop production in December rather than dump material at a loss into a market which is saturated with availabilities. Fuels production is much more appealing, so feedstock streams may be diverted away from Group I output, which could lead to shortages of this category during 2020. read more

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General Market Comment 20.11.19

US indices closed mixed on Tuesday with the Nasdaq closing in the green lifted by shares in the Pharmaceuticals, Biotechnology & Life Sciences (+0.69%), Software & Services (+0.66%) and Health Care Equipment & Services (+0.62%) sectors. Shares in the Telecommunication Services (-2.11%), Energy (-1.47%) and Retailing (-1.24%) sectors were under pressure.

U.S. official data showed that housing starts increased to 1.314 million units in October (1.320 million units expected, 1.266 million units in September). Building permits rose to 1.461 million units (1.385 million units expected, 1.391 million units in September), the highest level since mid-2007.

Later today, minutes of the Federal Reserve’s latest monetary policy meeting will be released.

European markets are expected to open on a negative note. read more

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BRENT Crude Technical Snap 19.11.19

BRENT Crude Technical Snap (Daily)

Pivot: 62.55

Our preference: short positions below 62.55 with targets at 62.00 & 61.70 in extension.

Alternative scenario: above 62.55 look for further upside with 62.90 & 63.20 as targets.

Comment: as long as the resistance at 62.55 is not surpassed, the risk of the break below 62.00 remains high.
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General Market Comment 19.11.18

US indices closed slightly higher in a choppy session on Monday lifted by shares in the Household & Personal Products (+1.05%), Consumer Durables & Apparel (+0.84%) and Real Estate (+0.5%) sectors.

On the economic data front, the National Association of Home Builders (NAHB) Housing Market Index came out at 70, just missing the 71 estimate for November, down 1 from 71 in October.

Later today, economists expect Housing Starts to reach 1320K for October, up 64K from 1256K in September. Also, Building Permits are expected to decline to 1383K for October, compared to a revised 1391K in September.

European markets are expected to open on a positive note. read more

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General Market Comment 18.11.19

US indices closed higher on Friday lifted by shares in the Health Care Equipment & Services (+2.87%), Pharmaceuticals, Biotechnology & Life Sciences (+1.65%) and Technology Hardware & Equipment (+1.07%) sectors.

On the economic data front, Empire Manufacturing released at 2.9, missing the 6.0 estimate for November, down from 4.0 the month before. The Import Price Index month over month change declined by -0.5%, more than the -0.2% consensus for October, down from a revised increase of 0.1% in September. Retail Sales Advance month over month change rose 0.3%, just above the 0.2% estimate for October, up from a decline of -0.3% the prior month. Industrial Production fell -0.8% in October, more than the expected -0.4% decline, down from a revised -0.3% fall in September, marking the worst reading since May 2018.

On Monday, economists expect the National Association of Home Builders (NAHB) Housing Market Index to reach 71 for November, in-line with the reading from October.

European markets are expected to open on a flat note. read more