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Macro Pulse highlights recent activity and events expected to affect the U.S. economy over the next 24 months. While the review is of the entire U.S. economy its particular focus is on developments affecting the Forest Products industry. Everyone with a stake in any level of the sector can benefit from
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Wednesday, May 2, 2018

April 2018 Monthly Average Crude Oil Price

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The monthly average U.S.-dollar price of West Texas Intermediate (WTI) crude oil stepped higher in April, increasing by $3.53 (+5.6%), to $66.25 per barrel. The advance coincided with an essentially stable U.S. dollar, the lagged impacts of a 842,000 barrel-per-day (BPD) drop in the amount of oil supplied/demanded during February (to 19.6 million BPD), and a very modest increase in accumulated oil stocks (monthly average: 430 million barrels). 
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From the 30 April 2018 issue of Peak Oil Review:
“With only two weeks to go before President Trump decides whether the US will withdraw from the Iran nuclear treaty, the oil market’s chief concern is about what could happen if the US reimposes sanctions. Even though Washington would have few, if any, allies helping to reimpose sanctions on Iran, the US carries considerable weight in the world banking system by threatening to deny access to the US to anyone doing business with Tehran. Conventional wisdom holds that renewed sanctions would slow Iranian oil exports and drive prices higher. ...
“As production from the Permian Basin increases, the US should be facing a glut of light, sweet crude which cannot be processed efficiently in Gulf Coast refineries.  As could be expected, low US crude prices have sent exports to an all-time high of 2.3 million b/d last week. US exports are expected to remain around this level over the summer or possibly climb even higher. ...
“Total US crude and petroleum exports also hit a record high of 8.3 million b/d the week before last. Much of the increase in oil products is due to the near collapse of Venezuela’s refining capacity and other refining problems around the Caribbean leaving US refiners to pick up the slack.”

The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.

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