<\/p>\n<\/a>Energies<\/u> –
\nOil futures dropped midday yesterday and this seemed to be related to news that Libyan rivals have agreed to set up a power-sharing \u201cPresidential Council.\u201d\u00a0 The two sides agreed to dissolve their militias and fight terrorist groups inside Libya.\u00a0 Obviously one has to take this agreement with a bit of skepticism considering the history here, but this would be \u201cgood\u201c news for the country in terms of oil production.\u00a0 As you can see, Libyan oil production has really struggled to recover to pre-2011 levels due to the constant in-fighting by militant rivals.\u00a0 If the two sides can even somewhat follow through on this, it adds significantly to the country\u2019s oil production.\u00a0 Interestingly, at the same time this story hit the wires, the Saudi prince was also making headlines discussing fiscal matters within the kingdom.\u00a0 It almost seems as if this story got lost in the shuffle yesterday, but I think it could prove important.<\/p>\n
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The weekly inventory data is out this morning.\u00a0 Expectations call for a decline of 3.5 mil barrels in crude oil stocks.\u00a0 Gasoline and distillates are both expected to increase 1.0 mil.\u00a0 API reported yesterday crude oil stocks were down 4.16 mil barrels, helping support overnight price action.\u00a0 Also supporting prices overnight is word that Russia apparently is onboard with extending the OPEC production cuts.\u00a0 Russia has apparently hit its target for production cuts at this point.\u00a0 This hasn\u2019t seemed to created a major market reaction, and again I point out that the cut extension is basically a known item at this point.<\/p>\n
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