Market Commentary
WHO Says “Worst is Yet to Come”
June 30, 2020
Crude oil and refined fuel product prices rose yesterday, mainly driven by signs of recovery in world economies and consumption. The oil rig count in the United States is very low and U.S. shale production keeps falling. Keeping prices from rallying higher are the continued concerns about Unites States fuel […]
Chesapeake Energy Files for Bankruptcy
June 29, 2020
The Baker Hughes rig count was down one oil rig on Friday. The total number of rigs looking for crude oil now stands at 188, down from 793 at this time last year. Bearish Signals The Labor Department reported last Thursday that 1.5 million Americans filed jobless claims. This brings […]
Oil Producers Grapple With Low Prices
June 26, 2020
Occidental Petroleum is preparing to write down up to $9 billion of its oil and gas properties this quarter. The move will allow Occidental Petroleum to restructure its debt and avoid default. The purchase of Anadarko Petroleum required Occidental Petroleum to take on additional debt. Sable Petroleum Resources has filed […]
Viral Cases Climb as Supplies Decrease
June 25, 2020
The energy market is juggling information about declining supplies and rising COVID-19 cases. Traders are trying to decipher how do these issues will play out and the outlook for energy supply and demand. Mercuria’s Chief Executive, Marco Dunand, sees the oil market in deficit by July with stock draws reaching […]
Trade Issues Put Market Under Tension
June 24, 2020
Crude oil and refined fuel product prices closed lower yesterday after hitting the highest point since March 6. Prices are under pressure this morning as trade tension put some uncertainty into the recovery of the global economy. Trade issues could derail the improvement of the U.S. and Chinese economies, which […]
White House Advisor Navarro Casts Doubt on US-China Trade Deal
June 23, 2020
The outlook remains positive and there’s data that continues to keep energy prices on track to move higher. The reports I’m seeing show supplies are tightening, but I still struggle with the numbers that show a glut of stocks in the United States. Price were higher yesterday as global oil […]
Backwardation Tightens Supply
June 22, 2020
Baker Hughes reports oil rig counts are down 10, putting total oil rigs at 189. That’s 600 fewer than last year for this reporting week. The news on the energy front was quiet over the weekend and remains so as we start the new week. One of the themes I’m […]
Gasoline Supplies Tightening?
June 19, 2020
Reports of COVID-19 rebounding in some states and countries hasn’t been enough to derail a bounce back in fuel demand. As countries and states emerge from lockdowns, demand is good and optimism abounds. Equities continue to trade higher and the energy market follows right along. Bullish Signals Bloomberg News reports […]
Shale Production to Rise by End of June
June 18, 2020
The propane inventory report showed that total stocks of propane were up 2.685 million barrels. The Midwest stocks were up 408,000 barrels with total Midwest stocks at 16.356 million barrels and last year at this time there were 19.113 million gallons. The Gulf Coast stocks were up 664,000 barrels putting […]
Fed Chair Powell Testifies Before Congress
June 17, 2020
The API inventory report yesterday afternoon called crude up 3.9 million barrels with Cushing down 3.3 million barrels. Gasoline stock were up 4.3 million barrels and distillates were up 919,000. The market should trade on the DOE inventory report today. The products seem to be the focus as crude has […]
Unemployment Will Remain Elevated Throughout 2020
June 16, 2020
Genscape reported that crude oil stocks held in Cushing, Ok in the week ending Friday, June 5th fell by 1,016,752 barrels. Dallas Federal Reserve President, Robert Kaplan, said the US economy will experience a “significant, historic” contraction in the second quarter before it starts to increase, and unemployment will remain elevated […]
Growing Number of COVID-19 Cases Causes Fear of Second Wave
June 15, 2020
The Baker Hughes Rig Count for oil rigs was down 7 on Friday putting total rigs at 199. Last year at this time there were 788 oil rigs in operation and the five year average is 672 and the five year high is 863. Rigs have fallen substantially, and production has […]