Keystone Pipeline Cleanup Shutdown Adds Bullish Sentiment to Markets
December 13, 2022
The energy market had bullish headline to react to yesterday and that rallied price. The news that the Keystone Pipeline may take longer to get back up than thought brought in buyers. This could create another draw to Cushing, Ok crude stocks as well as some disruption of refineries if it drags on long enough. These items were bullish news and buyers jumped into the market. Also, supporting buying was the news that China continues to ease their COVID restriction which many see as a sign of increased energy demand in China.
Russia continues to say they will cut off supplies to countries imposing a price cap. This is not new news but, on the day, this was thrown out to support the buying.
The EIA said oil output from the top shale regions in the United States is due to increase by about 94,500 bpd to a record 9.32 million bpd in January.
THE CPI was just released this morning and it was less than the market expected, and energy prices rallied up right after the release of the data.
Both Brent and WTI crude oil prices have decline after the EU sanctions were imposed on Russian oil. Below is the daily chart of WTI crude oil futures showing the decline since the sanctions. Crude oil has now rebounded so will the sanctions begin to support prices?