Market Commentary

US crude oil inventories decreased by 5.4 million barrels last week and are now 4% below the five-year average. Gasoline inventories increased by 2.2 million barrels last week and are now 5% below the five-year average. Distillate inventories increased by 1.1 million barrels last week and are now 15% below […]

On Friday energy prices continued their decline as demand destruction fears were stronger than supply disruption concerns. The cases of COVID in China continue to go up and the lockdown restrictions do not appear to be easing. The WSJ reported that China COVID-19 cases have risen 700% in the past […]

According to the EIA, US heating oil prices were 65% higher this October than they were in October of last year. Residential heating oil prices increased to an annual high of $5.90 per gallon on November 7th, because of tight inventories, low imports, and limited production capacity. John Hess, CEO […]

Prices are lower to start today as Poland issued a statement saying there were no indications that Russia was the cause of the missile on Tuesday. The Druzhba pipeline that transports oil and natural gas from Russia to Europe will be up and running full strength soon also easing prices.  […]

OPEC dropped its forecast for global crude oil consumption due to a combination of global economic concerns, an uncertain geopolitical climate, and persisting supply chain constraints. OPEC now expects 2022 global oil consumption to grow by 2.55 million barrels per day, a drop of 100,000 bpd from their October forecast. […]

Crude oil rallied on Friday mainly due to a large drop of 1.7% in the US dollar index, news that China had lifted some COVID-19 restrictions and Russia oil output expected to fall after the EU embargoes and bans starting December 5th. Baker Hughes reported that oil rigs were up […]

It is Friday and the headlines have provided some bullish news and prices are higher to start today. News that China may ease some restrictions on travel has the market higher. This news has the market hoping that the world second largest economy will see increased demand. Crude oil prices […]

The market was down in yesterday’s trading as profit taking and no constructive headline offered any support. The market also sold off as China waffled a bit on the idea that they may be easing there strict Covid zero tolerance lock down system. The US dollar was trading lower but […]

Kpler shipping data showed that deliveries of US crude oil to Asia are set to reach a record 1.8 million bpd in November, as demand climbed on a widening discount to global oil. Refiners in China, India and South Korea are returning as big US crude oil buyers after several […]

The DOE inventory report had crude oil inventories down 3.12 million barrels putting total stocks at 436.830 million barrels and last year there were 434.102 million barrels a 2.728 million barrel surplus over last year. Cushing, Oklahoma crude oil stocks were up 1.267 million putting total stocks at 28.164 million […]

Crude oil and gasoline prices were down on Friday, but ULSD price rallied. Bearish for prices was the Chinese National Health Commission saying China increased COVID-19 protections by sealing up buildings and locking down districts after 1,506 new cases were reported on October 27th. The IFM lowered China’s GDP by […]

US Secretary of State, Antony Blinken, said the US has noted Saudi Arabia’s aid to Ukraine and its vote against Russian annexation at the UN but those moves do not compensate for Saudi Arabia’s support of and OPEC+ decision to cut oil output.  The DOE inventory report called crude oil […]