Market Commentary

Oil rigs continue to fall supporting the outlook for lower US crude oil production. Oil rigs according to the Baker Hughes Rig Count Report fell by 4 to a total of 525 and last year for this same reporting week oil rigs were 598. Nonfarm Payrolls in the US were […]

Crude oil prices rallied in yesterday’s trading as news hit that Saudi Arabia will extend their voluntary additional oil output cut of 1 million bpd through September versus August. OPEC+ oil output cuts now total approximately 5.16 million bpd through September. Russia’s Deputy Prime Minister, Alexander Novak, said Russia will […]

Crude oil prices fell sharply yesterday after news late on Tuesday that Fitch downgraded the US long term foreign currency default rating to AA+ from AAA due to rising US debt. Oil prices fell despite EIA reporting a massive drop of 17 million barrels in total US oil stocks and […]

The API delivered a very bullish inventory report yesterday. Crude stocks were down 15.4 million barrels, gasoline down 1.68 million barrels and distillates down 512,000 barrels. The average estimates for today’s DOE inventories update from the Bloomberg survey are crude stocks down 713,000, gasoline down 1.407, and distillates down 89,000. […]

The Baker Hughes Rig Count report said that oil rigs were down 1 to a total of 529 and last year there were 604. US crude oil rigs have fallen by 92 rigs so far for this year of 2023. Today is the last trading day for July, and over […]

The energy markets were up again yesterday as a solid bullish move higher has now taken front-month WTI crude oil to its 200-day moving average. A break and settlement above that level could bring in more buying. The market was influenced by US GDP coming in higher than expected. The […]

The average estimates from the Bloomberg survey for today’s DOE inventory update are for crude oil inventories to decline 2.123 million barrels, gasoline inventories down 1.591 million barrels, and distillates down 822,000 barrels. The API inventory number released yesterday afternoon called crude oil inventoried up 1.3 million barrels, gasoline down […]

The energy markets traded higher yesterday driven by news of some refinery issues and maintenance. RBOB was the market that traded up the most as news hit that ExxonMobil refinery in Baton Rouge may be idled for a few weeks of repairs. Also, there is an upcoming turnaround at Monroe […]

Oil rigs were down 7 to 530 rigs, the sixth consecutive week of declines. Last year at this time there were 599 oil rigs. The falling rigs and the low stocks, especially of distillates, is getting attention. Jon Kemp of Reuters had an article last week about how the funds […]

WTI and Brent crude oil are flirting with their 200 day moving averages. There has been no decisive move yet, but this morning with a strong push higher they are trading above those 200 day moving averages and if they can close above them it should offer more buying next […]

Energy prices were higher yesterday as China said they will act to support their economic growth. The thought that the Fed will also halt interest rate hikes after July is also supportive and the news that US shale oil production is forecast to fall in August was also all supportive. […]

There are two big stories this morning that the markets are digesting. One is that Russia said it will suspend the Black Sea Grain Initiative that allowed for humanitarian corridor to deliver grain from Ukraine to key global markets. Wheat price shot up after the news. The other new was […]