Crude Benchmarks Soft After Another Quiet Day

by George Belekos, KPI Bridge Oil
Thursday December 29, 2016

Everybody is getting ready for New Year’s Eve and oil markets had another quiet day on thin trading from the paper side.

Benchmarks moved slightly lower on EIA report for rising stocks vs expectations for a decent decline.

WTI settled at $53,77, $0,29 per bbl lower while Brent closed the day 8 cents per bbl lower.

The big bet for early 2017 is if the agreed OPEC cutbacks will actually be implemented or the whole deal will fall apart in practice.

History has shown that such agreements are very difficult to go through.

Demand does not look very rosy and supplies are ample worldwide.

The strong dollar also puts a cap in oil prices.

Should the deal not be honored in full, expectations are that oil prices will tumble again.

Bunker prices have been relatively stable today.