Markets

Strength in the US dollar has been a frequent source of price pressure for crude and refined products (as well as other commodities) in recent months as the US has been recovering from the economic doldrums of 2020.

Before the OPEC+ meeting on Oct. 5, traders were already anticipating a reduction in output from the OPEC+ coalition, albeit a smaller cut than the one agreed to at mid-week.

US GoM production outages related to Hurricane Ian offered some support to futures prices for crudes and refined products, but the week's biggest day-on-day jumps came after bullish statistics from the US EIA at mid-week showed shrinking stocks and rising implied demand.

NYMEX RBOB joined the crude futures contracts in a bearish slide after the US Federal Reserve announced another sharp hike to interest rates, reigniting concerns that an economic recession will bite into oil demand.

DME Oman was the only petroleum futures contract covered here that saw a week-on-week price increase over the week ending Sept. 16, though ethanol futures moved higher as well.

NYMEX ULSD was the only futures contract covered here that registered a week-on-week price increase over the week ending Sept. 9.

Petroleum prices tumbled over the week ending Sept. 2 despite a relatively strong open on Monday for crudes as traders looked ahead to the Sept.-5 OPEC+ meeting and the possibility that the group could consider cutting output.

While concerns about petroleum demand amid fragile economic growth continued to weigh on sentiment, several OPEC members released statements supporting a new round of production cuts after the group spent the past year unwinding the reductions enacted due to the coronavirus.

Bullish weekly statistics from the US EIA pushed up futures prices for crude and refined products for the latter three days of the week ending Aug. 19.

Improved economic data as well as a forecast for better demand growth and an uptick in implied US demand for gasoline added to the bullishness inspired by a pipeline leak in the US GoM and a stoppage on the Druzhba pipeline, which carries crude from Russia to various European countries.