Market Commentary
Saudi Arabia Reduces Crude Supplies
February 28, 2020
Saudi Arabia is reducing its crude supplies to China in March by at least 500,000 bpd due to slower refinery demand following the coronavirus outbreak. China normally imports 1.8 million bpd to 2 million bpd of Saudi crude. Saudi Arabia is asking for the OPEC+ group to cut an additional […]
Schlumberger Sees Shale Growth Slowing
February 26, 2020
The API inventory report showed that crude stocks were up 1.3 million barrels. This compares with the Reuters outlook for a build of 2 million and the Bloomberg estimate of a 1.815 million barrel build. Gasoline stocks on the API were up 74,000 barrels compared with Reuters calling for a […]
Fear Driving Markets As Coronavirus Spreads
February 25, 2020
The market yesterday had a very strong sell off as the news of the spread of the coronavirus hit the news. The fear was back as the market worried about the spread impacting global economic growth. The DOW fell more than 1000 points in yesterday’s trading. The market is trying […]
Coronavirus Fears Rise as Virus Spreads
February 24, 2020
The comments are pretty easy and straight forward this morning. Cases of coronavirus have spread, and the fears of a global pandemic are rising as new locations outside of China report cases. Of course, this news has energy markets selling off as trading opened Sunday night and are down currently […]
Will Russia Join OPEC in Deeper Oil Production Cuts?
February 21, 2020
The DOE inventory report released yesterday had crude oil stocks up 420,000 barrels and the crude stocks at Cushing, Ok, the delivery point for the NYMEX futures complex, were down 133,000 barrels. Gasoline stocks were down 1.97 million barrels and distillates were down 640,000 barrels. Propane stocks were down 3.013 […]
Coronavirus Economic Impact Expected to be Short-Term
February 20, 2020
Crude oil and refined fuels product prices closed much higher yesterday mainly driven by US sanctions imposed on a Russian oil company, more conflicts in Libya, and a lower number of confirmed coronavirus cases in China. Brent crude oil recorded the 7th straight positive day in prices. The API released […]
Good News from China
February 19, 2020
Good news from China on the coronavirus is helping to give energy a chance to trade higher here this morning. Good news seems to bring out buyers and bad news the sellers. China reported its fewest new infections of coronavirus since January and its fewest deaths for a week. However, […]
Freight Shipments Are Down for Multiple Reasons
February 18, 2020
Energy market were closed yesterday and have opened lower to start this day. The downside in the energy market is being helped by reports that Apple said it will miss revenue guidance for the March quarter due to the coronavirus. This is just one on a growing list of companies […]
Markets Sell Off Over Fear of Viral Spread
February 17, 2020
The DOE inventory report called crude stocks up 450,000 barrels and the stocks at Cushing, Ok were up 910,000 barrels. Gasoline stocks were down 2.69 million barrels and distillates were down 2.12 million barrels. US production stayed strong at 13 million bpd. The news of the coronavirus spreading continues and […]
Japanese Economy Shrinks
February 17, 2020
Crude oil closed higher on Friday, which was mainly driven by news that Chinese refineries went on a buying spree which alleviated some concerns that the coronavirus now called COVID-19 would dampen world oil consumption dramatically. Baker Hughes reported that US Energy firms added 2 oil rigs in this reporting […]
German Economy Shows Signs of Struggle
February 14, 2020
Crude oil prices closed higher today , which was mainly driven by less fear of world demand destruction by the coronavirus (COVID-19). Confirmed cases of the coronavirus (COVID-19) spiked in China’s Hubei province due to a change in the methodology for diagnosing rather than in increase in transmission. There have […]
Coronavirus Impact on Global Oil Demand Could Be Significant
February 13, 2020
Propane stocks declined by 6.172 million barrels and this was a shock for the market. The report was a bit of a head scratcher any many market watchers are looking for something to be changed net wee or at the end of the month on the adjustment. Midwest stocks were […]