Market Commentary
Nearly Half of Offshore Oil Production in the Gulf of Mexico Remains Offline
September 15, 2021
The API said that crude oil stocks were down 5.4 million barrels and the supplies of crude oil in Cushing, Ok were down 1.3 million barres. Gasoline supplies were down 2.8 million barrels and distillates were down 2.9 million barrels. This report is supportive of prices currently until the market […]
Delta Variant Pushing Oil Demand Lower
September 13, 2021
Tropical Storm Nicholas formed in the Atlantic and is expected to hit Texas on Monday night. This storm should impact offshore oil production in the Gulf of Mexico as some companies have evacuated personnel. The coast of Louisiana is now expected to get 10 to 15 inches of rain which […]
Propane Inventory Levels Are Low
September 10, 2021
The China National Food and Strategic Reserve Administration said it intends to auction off crude oil from its strategic oil reserve at several different times in the near future. This is the first time every China has taken this action. The SPR in China is estimated to be 220 million […]
Markets Congest Without Strong Direction
September 9, 2021
The energy market continues to congest and whipsaw back and forth with no trend. It was reported that hedge funds purchased petroleum positions last week at the second-fastest rate this year. The energy market continues to struggle with several events that are impacting prices. One is the fact of demand […]
Seasonal Factors Weigh on the Market
September 7, 2021
On Friday, the Baker Hughes Rig Count had oil rigs down 16 to a total of 394. Last year at this time oil rigs were at 181. The market rallied up as traders were buying to cover more upside risk as the market continues to test higher as bullish optimism […]
Energy Prices Rebound, Payroll Numbers Disappoint
September 3, 2021
Energy prices rebounded and were up in yesterday’s trading as 1.7 million bpd or 93.55% of offshore oil output and 2.04 bcf/d or 91.2% of natural gas production in the US Gulf of Mexico remained shut on Thursday, four days after hurricane Ida. The US dollar index has also been […]
Big Draw In DOE Fuel Inventory Sends Bullish Signal
September 2, 2021
The big number from the DOE inventory report was the 7.169 million barrel draw to crude supplies when the market estimated a 2.879 million barrel decline. This is a bullish number but OPEC+ agreed to stick to their plan which means they will add an additional 400,000 BPD to production, […]
Large Portions of Louisiana Remain Without Power
September 1, 2021
The Bloomberg estimates for today’s DOE inventory report are for crude supplies to be down 2.750 million barrels. Gasoline supplies are estimated to be down 967,000 barrels and distillates are estimated down 467,000 barrels. The API data released yesterday afternoon called crude stocks down 4 million barrels, gasoline stocks up […]
Hurricane Ida Slams Louisiana
August 30, 2021
Hurricane Ida hit Louisiana with record-tying winds speeds of 150 miles per hour. New Orleans lost power and the storm surge caused the Mississippi River to reverse as massive amounts of seawater were forced ashore. The market’s initial reaction when Sunday night trading opened up was higher. Gasoline futures opened […]
Investors Look for Clues from Fed Chair’s Speech Today
August 27, 2021
Energy prices closed lower in yesterday’s trading session for the first time in a week. The softness in the market was on the back of oil demand concerns over rising COVID-19 cases, the US dollar bouncing from support, and Mexico restoring some of its recent lost production. Offering support to […]
Propane Stocks Remain Behind Last Year’s Levels
August 26, 2021
Crude oil stocks were down 2.98 million barrels putting total stocks at 432.564 million, and last year there were 507.763 million barrels. The crude oil stocks at Cushing, Ok were up 70,000 barrels putting total Cushing stocks at 33.665 million barrels, and last year there were 52.403 million barrels. US […]
Will Propane Inventory Build Up Enough for Winter Demand?
August 25, 2021
The API inventory report called crude oil supplies down 1.6 million barrels and the Cushing, Ok crude oil supplies were down 485,000 barrels. Gasoline supplies were down 985,000 barrels and distillates were down 245,000 barrels. The estimates for today’s DOE inventory report from the Bloomberg survey are for crude to […]