Oil commentary - 14 March 2018

Morning all. Brent closed down 0.31 last night to $64.64, WTi closed at $60.71 down 0.65 and Bitcoin closed at $9,188. I love the English language. There used to be terms that I would use as a kid, or at least heard people using, that honestly crack me up to this day. I'll give you some examples - when you slip on something, but you don't want to swear so mid falling over you exclaim "oopsy daisy". When someone tells you some shocking news you say "crikey!!". But my favourite has got to be when you ask someone how they are feeling and they say "A bit wibbly wobbly but I'll survive". Wibbly Wobbly. I mean who in the name of all that is holy came up with that? Still, I shall use it in context to comment on the oil market and it will sound acceptable. Yesterday's Brent market was very wibbly wobbly with a low of $64.05 and a high of $65.68. See? Easy. And it kind of makes sense. The one thing that I think everyone is pining for right now is some volatility. The market is about as interesting as listening to the shipping forecast on BBC Radio 4 so some wibbly wobbly trading patterns will be welcomed with the same glee as Guardiola will have over Sevilla beating Man Utd last night. What will break us out of this range on Brent though? Well as I mentioned yesterday I think the IEA report tomorrow will be important. The market is obviously ignoring every other fundamental that is clear for all to see right now, i.e. US rig count increasing by 60 since the start of the year. US oil production at 10.369mn bpd as of last week, a near 1mn bpd increase from January where production stood at 9.492mn bpd. Consistent builds on US crude stockpiles. Ignore, ignore, ignore. Demand has to start picking up because without it the majority of oil traders will be joining Mr Tillerson. Rex. Grrrr. Good day.