• TAC - The Arnold Companies
The Arnolds Companies

An Overnight Buying Spree

Wednesday, Feb 5 2020
Market Talk

Separate, unconfirmed reports of a drug that’s proving effective to stop the coronavirus, and a vaccine that may prevent further outbreaks are getting credit for a strong overnight buying spree in both stocks and energy futures.

In addition, OPEC and friends are convening for a second day, discussing if they’ll propose an emergency meeting to help stop the selling.

The API was reported to show a build of 4.2 million barrels in US crude oil inventory last week, while gasoline stocks increased by 2 million barrels and diesel stocks dropped by 1.8 million barrels. Oil prices did drop for a few minutes following that report, but recovered quickly and then were swept up in the early morning rally. The DOE’s weekly report is due out at its normal time this morning.

This rally is still meaningless unless it can hold on through an entire session, and until we start seeing prices trade and hold above some of the previous daily and weekly highs on the charts. That said, several short term technical indicators have now flipped and are pointing higher, suggesting we could be seeing the start of what could be an impressive bounce given the extreme oversold condition that we haven’t seen in several years.

One other factor that may encourage buying: As the charts below show, the demand-driven price collapse has flipped the forward curve in Brent and WTI from backwardation to contango, which will give financial incentive for physical traders to buy and hold inventory. It’s also worth noting that while prompt crude values are some $5/barrel cheaper than they were a week ago, forward values are actually more expensive now than they were last week, suggesting the long-term players are stepping in to buy as well.

Click here to download a PDF of today's TACenergy Market Talk.

TAC - The Arnold CompaniesTACenergyTAC AirKeystone Aviation

Latest Posts

News Update: New Senior Vice President and Chief Financial Officer
The Crescent® Renews and Expands Leases Totaling 48,856 Square Feet
Keystone Aviation Renews WYVERN Wingman Certification
TAC Air and The Wall Street Journal Launch Digital Newspaper Distribution for Business Aviation Executives


Latest Posts


The Arnold Companies
  • About
  • News & Views
  • Social Media
  • Careers
  • Contact Us
  • Sitemap
  • Supply
  • Customer Login
  • Apply For Credit
  • Market Talk Updates
  • Contacts
  • Blog
  • Social Media
Find Your Next Great Role With TAC.
Explore Careers
  • Privacy Policy
  • Terms of Use
  • Employee Login
TAC - The Arnold Companies © 2021. All Rights Reserved.