Market Commentary
Biden Considers Options to Lower Gas Prices
October 17, 2022
US commercial crude oil inventories(excluding those in the SPR) increased 9.9 million barrels week over week to 439.1 million barrels and are now 1% below the five-year average. Total motor gasoline inventories increased by 2 million barrels week over week and are 8% below the five-year average. Distillate fuel inventories […]
US Petroleum Exports Hit Record High
October 14, 2022
The weekly propane inventory update had propane stocks up 1.092 million barrels putting total stocks at 85.483 million barrels. Last year at this time total stocks were 71.700 million barrels. Midwest stocks were up 399,000 barrels putting total Midwest stocks at 24.864 million and last year there were 24.806 million. […]
Depleted Inventory Levels Are a Concern
October 13, 2022
The API inventory report released a day late due to the federal holiday on Monday. The report showed crude oil inventories up 7.1 million barrels, gasoline inventories up 2 and distillate stocks down 4.6 million barrels. The big build in crude is from the releases that have been coming from […]
Chinese Economic Worries Put Downward Pressure on Energy Prices
October 11, 2022
Continued bad economic news out of China has put strong selling pressure on energy prices. The Caixin service purchasing managers index for China fell in September to a reading of 49. From a reading of 55 in August. A reading below 50 indicates contraction. This news along with the concerns […]
French Oil Refinery Strikes Cause Disruptions
October 10, 2022
The Baker Hughes rig count said that oil rigs were down 2 to a total of 602 oil rigs and last year at this time was 433. US rigs and oil output has leveled off and remains around 12 million barrels per day and it appears it will stay in […]
Market Awaits Crude Oil Production Plan from OPEC+
October 5, 2022
The API reports called crude oil inventories down 1.8 million barrels, it called gasoline inventories down 3.5 million and distillates down 4 million barrels. The average estimates for the government’s DOE report from the Bloomberg survey is calling crude up 1.577 million barrels, gasoline down 1.232 million and distillates down […]
OPEC+ Mulls Crude Production Cut
October 4, 2022
Crude oil futures jumped up over $4 dollars per barrel yesterday as OPEC+ considers reducing output by 1 million barrels per day to support prices. Such a move would represent the biggest production cut since the start of the COVID-19 pandemic. There are other reports that in addition to the […]
Fuel Inventory Draws Offer Bullish Energy Support
September 29, 2022
The DOE report had crude inventories down 215,000 barrels, gasoline inventories were down 2.4 million and distillates down 2.9 million, draws across the board offered support to the energy markets. Refinery runs were down 3% to 90.6% of capacity. The European Union is considering adding shipping restrictions to its oil […]
Darkening Economic Outlook Clouds Demand Forecast
September 26, 2022
Javier Blas of Bloomberg wrote last week that there are strong reasons to be bullish about commodities, but the darkening macro background is starting to win out. Demand growth from rapidly slowing economies will fall faster than the supply of commodities can adjust. These comments are not a very positive […]
Energy Prices Slump Against Resilient Inflation Pressure
September 14, 2022
Energy prices fell in yesterday’s trading and US equities markets had a sharp selloff. The markets were pressured by rise in invention for August which was above expectations. The energy markets started the day higher on continue concerns about tight supplies but after the CPI report was released and the […]
August CPI Data Shows Higher Than Expected Inflation
September 13, 2022
Energy prices rose for the third straight day, which was mainly driven by a large drop in the US dollar index, less confidence in the Iran nuclear deal, the G7 countries planning to implement a price cap on Russian oil, and oil expected to tighten after the US stops 1,000,000 […]
Hopes of Iranian Oil Entering Market Dim Under Nuclear Deal Skepticism
September 12, 2022
German, France, and Britain over the weekend acknowledged that they have doubts that the Iran nuclear deal will get done. This means that all those hopes for more Iranian barrels of oil on the market have been dashed. Crude oil and refined product prices are higher this morning, but there […]