Category: News

EMEA Base Oil Price Report

Base oil markets have returned to full steam after the seasonal break, and buyers and sellers are trying to fathom just where prices and availabilities lie.

A few pieces are missing from the overall puzzle, however, as Orthodox Christmas celebrations took place in Russia and Greece last week, possibly denting activities in some markets.

The scene for API Group I oils is shifting, since availability of all grades is perhaps more prolific than forecast. That and the retreat of feedstock prices are making it difficult for Group I sellers to push for price hikes. Some are sticking with increased offer prices, while others are adopting flexible stances. read more

BRENT Crude Technical Snap (Daily)

Pivot: 63.90 Our preference: long positions above 63.90 with targets at 65.00 & 65.25 in extension. Alternative scenario: below 63.90 look for further downside with 63.55 & 63.30 as targets. Comment: the RSI calls for a rebound.

BRENT Crude Technical Snap (Daily)

Pivot: 64.70 Our preference: short positions below 64.70 with targets at 63.90 & 63.25 in extension. Alternative scenario: above 64.70 look for further upside with 65.25 & 65.65 as targets. Comment: as long as the resistance at 64.70 is not surpassed, the risk of the break below 63.90 remains high.

EMEA Base Oil Price Report

Buyers and sellers returned to their desks this week, but base oil trading remained quiet, likely to pick up as the week progressed.

Markets were rocked, however, by a jump in crude oil prices after the United States assassinated Iranian military commander Qasem Soleimani, leading to threats of further attacks by both sides.

API Group I values are being reviewed by sellers, and some are already offering higher numbers than at the end of last year. Rising feedstock prices are being cited as the main reason, but some producers have not raised prices. read more

BRENT Crude Technical Snap (Daily)

Pivot: 66.25 Our preference: long positions above 66.25 with targets at 66.75 & 67.05 in extension. Alternative scenario: below 66.25 look for further downside with 66.00 & 65.80 as targets. Comment: the RSI has just landed on its neutrality area at 50% and is turning up.

Today’s Economic Events

No major economic report expected

US indices closed up on Monday, lifted by the Technology Hardware & Equipment (+1.39%), Energy (+1.06%) and Capital Goods (+0.84%) sectors. On the economic data front, Durable Goods Orders declined 2.0% for the November preliminary reading, missing the 1.5% consensus, down from a revised rise of 0.2% in the prior reading. New Home Sales fell to 719K for November, below the 732K estimate, up from a revised 710K in October.

On Tuesday, economists expect the Richmond Fed Manufacturing Index to release at 1 for December, up from -1 in November.


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

BRENT Crude Technical Snap (Daily)

Pivot: 66.25 Our preference: short positions below 66.25 with targets at 65.55 & 65.30 in extension. Alternative scenario: above 66.25 look for further upside with 66.55 & 66.75 as targets. Comment: the RSI calls for a new downleg.

Today’s Economic Events

GE NOV Import Prices (MoM) exp: NA prev: -0.1%
15:00 US NOV New Home Sales (k) exp: 727 prev: 733

US indices closed up on Friday, lifted by the Telecommunication Services (+1.18%), Semiconductors & Semiconductor Equipment (+1.16%) and Pharmaceuticals, Biotechnology & Life Sciences (+1.03%) sectors. On the economic data front, GDP remained at 2.1%, as expected for the third quarter, in-line with the prior reading. Personal income increased 0.5% for November, more than expected, up from a revised 0.1% last month. Personal spending rose 0.4% in November, as anticipated, up from a rise of 0.3% in October.

On Monday, economists expect Durable Goods Orders to rise 1.5% for the November preliminary reading and New Home Sales are anticipated to fall to 730K for November.


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