Market Commentary

The propane inventory update had total stocks down 1.968 million barrels putting total inventories at 76.619 million. Last year at this time total inventories were at 58.686 million.  Midwest inventories were down 390,000 barrels putting total Midwest stocks at 22.291 million and last year inventories were at 19.311 million barrels. […]

The API inventory report called crude oil inventories up 7.6 million barrels, gasoline inventories up 2.8 million barrels and distillates down 1.8 million barrels. Citigroup economists said the probability of a global recession has decreased and are now predicting a less hard landing after China abandoned its zero-COVID policy and […]

An upbeat OPEC monthly report raising China oil demand by 510,000 bpd for 2023 helped to support price yesterday. Although OPEC left its oil growth forecast for 2023 at 2.22 million bpd, OPEC said a stronger economy could lead to upward oil demand revisions on the months to come. OPEC’s […]

Distillate demand over the past four weeks has been at 3.63 million bpd, off 5.5% from a year ago. The almost 19 million barrel build to crude stocks last weeks has now put them 1% above the five year average for this time of year. Gasoline inventories are now 7% […]

There is no forward contracting available today as the energy markets are closed. Crude oil prices were up 1.5% on Friday and up roughly 8% on the week. The rally in prices was mainly driven by the fall in consumer price index (CPI) from last month which in turn pushed […]

The propane inventory report showed a draw to inventories of 2.094 million barrels putting total inventories at 78.587 million. Midwest inventories were down 1.055 million putting total Midwest inventories at 22.681 million. Gulf Coast inventories were down 542,000 barrel putting Gulf Coast inventories at 45.251 million barrels. The DOE report […]

The Chinese lunar new year starts on January 16th, and last up to 23 days and this celebration is being seen as an economic stimulus and should help energy demand. However, there are some experts that say if China opens its borders for the Lunar New year, COVID-19 cases may […]

Phillips 66 expects supplies of gasoline and diesel to be tight this summer. Jeff Dietert, a Phillips 66 vice president said globally, there has been a loss of about 4.7 million bpd of processing capacity. Less capacity have driven up refiner’s margins and utilization rates as demand recovered. He said, […]

The API inventory report called crude oil up 3.3 million barrels, gasoline up 1.2 million barrels, and distillates down 2.4 million barrels. Despite the draw in crude prices are higher this morning. After two big down days the market is due a bounce. The big questions everyone want to know […]

The energy markets have seen a very strong pullback from recent highs and today the market is lower again putting us back to level just before the Christmas Holiday break. Pundits were calling bad China news the catalysts for the downside. China’s official manufacturing PMI index was down to 47.0 […]

The Baker Hughes Rig Count had crude oil rigs down 1 to a total of 621 oil rigs and last year at this time there were 480 oil rigs in operation. Domestic production continues to hang right around the 12 million barrels per day mark. Energy markets traded higher on […]

No contracting tomorrow Friday December 23 or Monday December 26 as our offices are closed. Propane inventories were down 2.921 million barrels putting total propane inventories at 87.415 million barrels. Last year there were 70.023 million barrels so there are now 17.392 million more barrels than last year. Propane inventories […]