Tuesday, October 15, 2013

Oil: The Market Gets a Bit More Opaque With the EIA Shutdown, WTI Continues Stately Descent

WTI $101.65 down 74 cents.
Tomorrow's report will be the first affected by the government shutdown.
From Invezz:
...EIA shutdown
Traders prepare for more opaque oil market as EIA shuts down
Traders prepare for more opaque oil market as EIA shuts down.
 
This week, the EIA’s weekly report on the production, use and inventory of fuel and crude will not be published after the government agency ceased operations and furloughed staff on October 11. The weekly EIA report, based on information which oil and gas companies are required to provide to the US government, is among the most closely watched set of data in the global oil market. “It is unconscionable that we are making this market less transparent, it is already opaque,” Jan Stuart, head of Global Energy Research of Credit Suisse, noted as quoted by Reuters. “It’s crazy.” In the absence of the EIA report, the market would have to turn to commercial reports from organisations such as the American Petroleum Institute (API). “They’re going to be the only game in town,” Reuters quoted Phil Flynn, analyst at Price Futures Group, as saying. The newswire however has noted that the API report, based on voluntary submissions covering the same type of data as the EIA report, has often been criticised for being less accurate.