Energy Prices Under Pressure From Recession Fears
June 23, 2022
The DOE inventory report will not come out today. The EIA announced that due to technical issues the report will not be released. There is some debate about whether this report gets updated later or if we just get a report next week. Until the “technical issues” are resolved we will have to just wait and see.
The market had some big trading ranges yesterday with ULSD futures having a daily range of $0.2039, RBOB a daily range of $0.196 and WTI crude oil a daily range of $8.25 per barrel. The market continues to move up and down depending on the hot news of the day with respect to recession versus low inventories and that looks to continue here in the near term.
The API inventory estimates called crude oil stocks down 1.2 million barrels, gasoline stocks down 256,000 barrels, and distillate stocks up 858,000 barrels.
Due to rising mortgage rates and higher inflation JP Morgan Chase will lay off hundreds of employees from its mortgage business and hundreds of other will be reassigned to different divisions of the bank.
Germany has triggered a stage two “alert level” of its emergency plan, meaning Germany now sees a high risks of long-term natural gas shortages.
Energy prices remain under pressure from the fears of a global recession. As central banks continue to raise interest rates to try and lower inflation. Higher interest rates slow economic activity which potentially lowers energy demand.