Energy Markets Continue Run Higher
October 6, 2021
The energy markets continue to run higher in yesterday’s trading and WTI crude oil traded to its highest level in 7 years and natural gas prices reached a 13 year high. There is speculation that natural gas shortages in Europe could spill over into the US with winter weather heating demand switching over to heating oil and fuel oil versus natural gas. These concerns continue to offer support to the market to rally higher.
The API numbers were a bit bearish, but I am not sure the market really cares at this point as the concerns mentioned above and add into those a little fear factor and you get the strong rebound in prices we have been seeing.
The API had crude stocks up 951,000 barrels with Cushing up big 2 million barrels. Gasoline stocks were up 3.7 million and distillates were up 345,000 barrels.
British military personnel in fatigues were driving trucks on Tuesday at a fuel depot in southern England to ease a trucker shortage that triggered panic buying at the pumps. Prime Minister Boris Johnson denied the country was heading into crisis.
The average estimates for today’s DOE inventory report from the Bloomberg survey are calling crude stocks up 396,000 barrels. Gasoline down 264,000 barrels and distillates down 754,000 barrels.
The average estimate for today’s propane inventory update is for stocks to build by 803,000 barrels. The five-year average for this week is a build of 714,000 barrels.