- Oil is trading higher following yesterday's interest rate cut
- The Federal Reserve cut rates by 50 bps yesterday in the first reduction of the Federal Funds Rate in several years
- Lower interest rates should support crude consumption while also weakening the US dollar, which would also be supportive of oil prices
- US and Canadian refinery maintenance lags prior years (Argus)
- US and Canadian fall refinery maintenance is lighter than in previous years, with turnarounds at refineries totaling up to 1.8 MMBbl/d starting this quarter and 2.6 MMBbl/d of capacity scheduled for the second half of the year
- BP's 435 MBbl/d Whiting, Indiana, refinery and Cenovus' 183 MBbl/d Lima, Ohio, refinery begin turnarounds this month
- US refinery utilization is expected to decline to an average of 91% in Q3 and 88% in Q4, according to EIA
- Lower refinery maintenance should result in less bearish pressure on oil prices
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