Market Commentary
US Inflation Cools
February 29, 2024
The DOE inventory report had crude up 4.199 million barrels, Cushing, OK crude stocks were up 1.458 million barrels, gasoline stocks were down 2.832 million and distillates were down 510,000. The smaller decline in distillate stocks than expected is putting some softness in prices. Crude oil inventories built for the […]
Distillate Inventories 10% Below Five-Year Average
February 26, 2024
Energy prices fell on Friday by more than 2.3% mainly driven by lower probability the Fed will cut rates anytime soon, peace negotiations appearing stronger in Paris between Israel and Hamas that could end oil supply disruption risks in the Middle East, and Baker Hughes reporting that 6 crude oil […]
Have Interest Rates Reached Their Peak?
February 23, 2024
The DOE weekly inventory report had crude oil stocks up 3.51 million barrels, gasoline supplies down 290,000 barrels and distillates down 4.01 million barrels. Total crude oil supplies are now at 429.91 and the 3-year average is 452.702. A 9.738 deficit to the 3-year average. Last year there were 479.041 […]
China Looks to Jolt Economy
February 21, 2024
China is trying to boost its economy by lowering a key interest rate for mortgages. This could give energy demand in the world’s second largest economy a jolt. Energy prices were lower in yesterday’s trading as the big sell off in natural gas is having some impact on diesel and […]
Turmoil Continues in Middle East
February 20, 2024
Turmoil continues in the Middle East. There were reports that a rocket fired by Yemen Houthi rebels in the Red Sea hit an oil tanker heading to India. Hezbollah also fired dozens of rockets at a northern Israel town in response to 10 civilians killed in southern Lebanon. The increase […]
Baker Hughes Rig Count Down to 497
February 19, 2024
Energy Markets are closed today for Presidents’ Day so there are no forward contracts available. The Baker Hughes Rig Count Report had oil rigs down 2 to a total of 497 oil rigs. Last year at this time there were 607 oil rigs in operation. The decline of two rigs […]
IEA Lowers Crude Oil Demand Forecast
February 16, 2024
The energy markets are closed on Monday 2-19-2024 for Presidents’ Day, there is no forward contracts on that day. The energy markets continue to be up and down as the news and new data points come out and there appears to be no clear direction at this point. Crude oil […]
A Bearish Inventory Report for Crude Oil
February 15, 2024
President’s Day is Monday February 19th, and the energy markets are closed so there will be no forward contracts offered on Monday. The DOE had crude oil inventories up 12.02 million barrels, putting total stocks at 439.450 million and last year there were 471.394 million. Gasoline stocks were down 3.66 […]
Higher than Expected Inflation Data
February 14, 2024
The API called crude oil inventories up 8.52 million barrels, gasoline supplies down 7.23 million barrels, and distillates down 4.016 million barrels and the crude oil stocks at Cushing, Ok were called up 512,000 barrels. The average estimate for today’s DOE government inventory update from the Bloomberg survey is calling […]
Morgan Stanley Publishes Bullish Outlook for Global Oil Markets in 2024
February 13, 2024
WTI crude oil prices rallied slightly along with RBOB gasoline which was up 1.6%. Brent crude oil prices however were down along with ULSD. The mixed prices in yesterday’s trading came as the market continues to wrestle with global demand outlooks, prospects for supply disruptions, and the tension in the […]
US Natural Gas Prices Fall to Three-Year Low
February 12, 2024
Crude oil prices were higher again on Friday along with ULSD prices. Energy prices were up by about 2.5% this past week mainly due to Israel continuing its missile attacks against Hamas in Gaza. The news that Ukraine drones had fired missiles at 2 Russian refineries on Friday also help […]
BP Shuts Down Indiana Refinery
February 2, 2024
There were two big new items yesterday. The first was heavy flaring and power upset at BP’s Whiting Indiana refinery and the report of a cease fire in the Gaza conflict. BP said it was shutting down its 435,000-bpd refinery in Whiting, Indiaan after a suspected power outage. The City […]