Oil commentary - 25 September 2019

Morning all. Brent closed last night at $63.10 down 1.67 and WTi closed at $57.29 down 1.35. Has anyone seen Greta? I reckon she's the next Swedish Energy minister - 100pct. Make Sweden Greta again. Anyway, what a miserable day yesterday was for the crude oil market. And for many, it should hardly come as a surprise. I'd like to thank Mr Lipow for this comment - “Given continued U.S. production growth and new production in Norway and Brazil, the market feels oversupplied...". Gee, really? I mean with all respect this new production has hardly come out of the blue, has it?  "Oh hello, 2mn bpd of new production, where have you been hiding you cheeky little scamp??". Erm, no. I do however think that the market is perhaps weaker than it should be. Personally, I can't see Saudi production returning as it is claimed, I might be wrong (shock) but I just can't see it. The market seems to have priced in the fact that it will return to normal in the next week though and Brent has returned to levels last seen before the attacks on 14th September. Trump didn't offer the bulls any respite yesterday as the seemingly never-ending saga between the US and China reared its head again. Nobody actually asked him about it, he just went off on a Tourettic tirade about China stealing intellectual property and currency manipulation etc etc. Not the best start to a possible resolution is it Donald? Let’s see how that pans out but don't expect anything positive for a while. API data says that we can expect a build on crude inventories later. This will only be the second build in 6 weeks, but it doesn't matter - a build is just nigh on disastrous for the bulls right now and this is evidenced in Brent trading this morning at $62.41 down 0.70. Are we close to breaking through that psychological $60 barrier again? It wouldn’t be the first time this year now, would it? Let’s wait for stats later. Good day.