Market Commentary
COVID-19 Creates Unprecedented Closures
March 13, 2020
Yesterday was a very big down day in the energy markets as the spread of the coronavirus caused many closures that are unprecedented. Every major sporting event or league in the world either canceled or suspended all activities for the rest of the season or until further notice. The big […]
COVID-19 Concerns Are Reaching New Levels
March 12, 2020
Today the news is again bad as the coronavirus concerns are reaching new levels. As organization cancel meetings, the NCAA says games will be played with no fans, company’s ban travel for employees unless absolutely critical, and some university go to online classes only these actions have caused another round […]
Saudi Arabia Gets Aggressive
March 11, 2020
President Donald Trump spoke with Saudi Arabia’s Crown Price Mohammed bin Salman on Monday to discuss global energy market , among other issues. The US Department of Energy reported that it has suspended a sale of up to 12 million barrels of oil from the Strategic Petroleum Reserve due to […]
Crude Had Its Biggest One Day Drop Since 1991
March 10, 2020
Yesterday saw most all markets take massive losses and energy was no exception with crude oil down 20% the biggest one day down since 1991. This was all the reaction to the fear surrounding the coronavirus and Saudi Arabia saying they would increase production after the OPEC+ group couldn’t come […]
OPEC+ Breakdown Results in Price War
March 9, 2020
The price war is on and it didn’t take long for the energy markets to feel the pain. Russia’s noncooperation with OPEC has not set well with Saudi Arabia and the Kingdom went on the aggressive to gain market share and wreck the market. Saudi Arabia offered Asian and European […]
COVID-19 Spread Causes Demand Destruction
March 6, 2020
The news for today is pretty much the same two things that the market has been watching for a while now; coronavirus and OPEC+. The market is down hard again today as it seems Russia is still not on board with the OPEC cuts. This news has seen energy prices […]
OPEC Cuts Crude Output
March 5, 2020
OPEC looks to have agreed to cut output by an additional 1.5 million bpd for the second quarter of 2020. The meeting still has to take place and get the official announcement and Russia is still a wild card. It seems that they will go along with the plans, but […]
Fed Cuts Interest Rates By 50 Basis Points
March 4, 2020
The inventory report from the API said that crude oil stocks were up 1.7 million barrels. The crude stocks at Cushing, Ok were down 1.4 million barrels. Gasoline stock were down 3.9 million barrels and distillates stocks were down 1.7 million barrels. The average estimates form the Bloomberg survey are […]
Central Bankers Ready Stimulus to Boost Economic Activity
March 3, 2020
OPEC meets this week and members have begun to show up in Vienna and this event will be the news for the next couple days and headlines could help push prices. It was rumors of more cut by OPEC that have helped support the bullish buy back over the last […]
Energy Products Fall Significantly on Viral Fears
March 2, 2020
Crude oil and refined fuel product prices fell significantly on Friday near 13 month lows on increased fears that the coronavirus (COVID-19) will spill over into other countries besides China and reduce global economic growth. Coronavirus confirmed cases recently spiked in Italy, South Korea, and Iran. This caused the Dow […]