Energy Prices Rebound, Payroll Numbers Disappoint
September 3, 2021
Energy prices rebounded and were up in yesterday’s trading as 1.7 million bpd or 93.55% of offshore oil output and 2.04 bcf/d or 91.2% of natural gas production in the US Gulf of Mexico remained shut on Thursday, four days after hurricane Ida. The US dollar index has also been falling the last two days adding support to energy prices. The larger than expected drop to crude supplies in this week’s DOE report is also helping drive the current upside, as well as optimism about the pace of the economic recovery in spite of the COVID-19 pandemic.
The non-farm payroll number this morning was not as good as many had hoped. The economy added just 235,000 new jobs and the estimate from the Dow Jones survey of economists was looking for something closer to 720,000 new positions.
The big draw to crude stocks this week took inventory to the lowest level we have seen since September 2019.
President Joe Biden said he has directed the Department of Energy to use all tools, including the Strategic Petroleum Reserve, to keep gas flowing in the aftermath of Hurricane Ida. He said the EPA will issues waivers to allow gasoline to continue to be sold.