Global demand growth revised lower is downside pressure for oil and more bad news for the commodity.. Short cad or oil are firm proxies to play this. 44.7 next target lower before 43.6. Weve seen oil move 2% lower on the day already on the back of the news, more downside today may struggle but I wouldnt be surprised.
Fed/ weak dollar may hinder further downside moves so engaging short on rallies is perhaps more prudent that broad shorts.. especially in this very choppy oil market.
IEA MONTHLY OIL MARKET REPORT:
-Global Oil Demand Growth Is Slowing At A Faster Pace Than Initially Predicted. For 2016, A Gain Of 1.3 Mb/D Is Expected
-World Oil Supplies Fell By 0.3 Mb/D In August, Dragged Lower By Non-OPEC
-OPEC Crude Production Edged Up To 33.47 Mb/D In August - Testing Record Rates As Middle East Producers Opened The Taps
-Anaemic Outlook For Refining Throughput Extends Further Amid Downward Revisions To Our 2H16 Forecast
-OECD Total Inventories Built By 32.5 Mb In July To A Fresh Record Of 3 111 Mb
-Expects First Quarterly Crude Stock Draw In More Than Two Years
Fed/ weak dollar may hinder further downside moves so engaging short on rallies is perhaps more prudent that broad shorts.. especially in this very choppy oil market.
IEA MONTHLY OIL MARKET REPORT:
-Global Oil Demand Growth Is Slowing At A Faster Pace Than Initially Predicted. For 2016, A Gain Of 1.3 Mb/D Is Expected
-World Oil Supplies Fell By 0.3 Mb/D In August, Dragged Lower By Non-OPEC
-OPEC Crude Production Edged Up To 33.47 Mb/D In August - Testing Record Rates As Middle East Producers Opened The Taps
-Anaemic Outlook For Refining Throughput Extends Further Amid Downward Revisions To Our 2H16 Forecast
-OECD Total Inventories Built By 32.5 Mb In July To A Fresh Record Of 3 111 Mb
-Expects First Quarterly Crude Stock Draw In More Than Two Years