Oil Enters Bear Market | Keystone XL Pipeline Blocked by Federal Judge
Published November 9, 2018
West Texas Intermediate fell as low as $59.30 this morning as the commodity witnessed its longest losing streak ever recorded. Prices are now over 20% below the highs achieved earlier this quarter. Oil has now entered a bear market, with the drop coming ahead of the OPEC meeting in Abu Dhabi this weekend.
In the latest set back for Canadian crude, the Keystone XL pipeline project was blocked by a federal judge in Montana pending further environmental review. This comes at a critical moment for the Canadian based pipeline as the project attempts to deliver crude from Alberta’s oil sands.
Third quarter GDP data for the UK demonstrated positive growth at the most solid pace in years. The data also showed an improvement to the country’s net trade position as the deficit in goods fell. Focus still remains on achieving a Brexit deal that can pass parliament and have EU endorsement.
The greenback has continued its advance after the Federal Reserve stayed on track for a December rate hike. Fed Chair Powell was quick to look past current market volatility which was not deliberated on during the meeting. US producer price inflation data is due this morning with expectations of a rise of 0.2% for the month. Additionally, University of Michigan consumer sentiment numbers are released with wholesale inventories data.