Oil Rises Ahead of EIA Crude Inventory Data
The energy sector is poised for a mixed to higher start, backed by strength in the crude complex while major equity futures seesawed ahead of policy guidance statement from the Fed, rising concerns over a disorderly exit of Britain from the EU, several major earnings announcements and a critical round of trade talks between the U.S. and China. Expectations from today's Federal Reserve rates review are that policymakers will reinforce their recent dovish stance given signs of a slowdown in the U.S. economy while trade talks are set to focus on deep differences over Washington's demands for structural economic reforms by Beijing.
WTI and Brent crude oil futures were up ~1% in early trading, building on yesterday's ~2.5% pop, supported by the possibility of supply disruptions following U.S. sanctions on Venezuela's oil industry, however, the market will likely be paying closer attention to EIA crude inventory data out later this morning and any headline from the high-level US/China trade talks in Washington. Analysts expect the government data to show U.S. crude and gasoline stocks rose last week while distillate stocks dropped; in line with last night API data.
Natural gas futures dropped over 1% this morning on moderating weather forecasts for the first two weeks of February.
Reuters - Petroleo Brasileiro said that its negotiations with Chevron to sell its Pasadena refinery are nearly done, and the deal will be discussed b....