Market Commentary
Fed warns of ‘some pain’ ahead as it fights to bring down inflation
August 29, 2022
OPEC plans to discuss a cut to production in their next meeting on September 5. I think the only way they scale back is if the Iran nuclear deal get done. The Baker Hughes Rig Count had oil rigs were up 4 oil rigs to a total of 605 and […]
Fuel Stocks are Down and SPR at Lowest Level Since 1985
August 25, 2022
The government’s inventory report said that crude oil stocks were down 3.28 million barrels, the estimate was for a draw of 1.961 million. This now puts total stocks at 421.672 million and last year there were 432.564 million. Gasoline stocks were down 27,000 barrels and the estimate were for stock […]
Market Watchers Expect Hawkish Comments from Fed Chair on Friday
August 24, 2022
The API reported that crude stocks were down 5.6 million barrels, gasoline up 268,000 and distillates up 1.1 million barrels. The average estimates for today’s DOE inventory update are for crude stocks to be down 1.961 million barrels, gasoline stocks down 2.046 million barrels, and distillate stocks up 359,000 barrels. […]
Iranian Nuclear Deal is a Wild Card for the Energy Market
August 22, 2022
The Baker Hughes Rig Count Report had no change for oil rigs in this reporting week. Oil rigs stayed the same at 601 rigs compared to last year when there were 405 oil rigs. The following is from Bloomberg:The buyers in South Korea, India, and China have picked up substantial […]
Economic Concerns Pushing Oil Pricing Downward
August 19, 2022
Consulting firm BCA said EU embargoes on Russian crude oil will tighten supplies by 1.6 million bpd this year and 2.0 million bpd net year. Due to tight oil supplies, BCA expects Brent crude oil to rise to $119 by year end. However, Russia is forecasting rising oil output and […]
Housing Data Suggest US Economy May Be Slowing Down
August 17, 2022
The API inventory report said that crude oil stocks were down 448,000 barrels, gasoline inventories were down 4.5 million barrels and distillate stocks were down 759,000 barrels. The average estimates for today’s DOE inventory update from the Bloomberg survey are for crude oil stocks to be down 259,000 barrels, gasoline […]
US Considering EU Proposal to Revive Iranian Nuclear Deal
August 15, 2022
The Baker Hughes Rig Count was up 3 oil rigs to a total of 601 and last year there were 397. The energy market is trading down to start a new week as data out of China shows that their economy slowed in July. This news has traders concerned that […]
Shell Takes Three Offshore Drilling Rigs Offline
August 12, 2022
Shell was forced to shut in production on three Gulf of Mexico offshore deep water platforms due to a pipe issues. This will impact 410,000 bpd of production. This week is a volatile one with early down days finishing higher and early up days finishing lower. This is the result […]
Lower Gas Prices Offer Inflation Relief
August 10, 2022
The API weekly inventory numbers called crude oil stocks up 2.15 million barrels, gasoline stocks down 627,000 and distillates up 1.37 million. The Reuters survey for today’s DOE reports is saying crude oil and gasoline to be down 400,000 and diesel to be roughly unchanged. Crude oil prices feel slightly […]
OPEC+ Raises Production Minimally
August 4, 2022
OPEC+ agreed to increase production by just 100,000 bpd which is nothing really, but they did up the number. The market has rallied and now sold off to roughly the same price level when the Russian invasion of Ukraine began. The market is now looking for the next catalyst to […]
Propane Inventories Near Bottom Range of 5-Year Average
August 3, 2022
The average estimates for today’s DOE inventory report from the Bloomberg survey are for crude to be down 798,00 barrels, gasoline down 1.014 million barrels and distillates up 740,000 barrels. In propane, weak domestic demand has led to larger than expected inventory builds and, despite growth in domestic production, propane […]
Manufacturing Demand Slows Across the Globe
August 2, 2022
JP Morgan said its Brent crude oil price forecast continues to call for a stabilization in price towards the low $100s in the second half of 2022 and the high 90s in 2023. It said “our oil strategists’ flag that the risk of a recession is not yet priced into […]