Market Commentary

Bloomberg Economics models indicates the odds for a recession by 2024 have jumped to at least 72%. Many economists think the Fed needs to raise rates faster to slow down the economy and help ease inflation. The continued fear of a recession has taken some of the luster off the […]

The energy markets are headed into a three-day holiday weekend in the United States and that normally gives rise to traders getting out of their short positions, which means then most buy to close the positions and this should support crude oil prices into the long weekend. US gasoline prices […]

The estimates for today’s DOE inventory report from the Bloomberg survey are estimated to show crude oil supplied down 1.231 million barrels, gasoline supplies up 224,000 barrels and distillates up 168,000 barrels. Refinery run rates are estimated to be up 0.5% to 94.2% of capacity. Refineries look to continue to […]

Crude oil prices rose slightly, but refined fuel product prices fell significantly on a volatile trading day yesterday. Prices started the day much lower due to inflation concerns and a COVID-19 outbreak in Beijing, China. Record high inflation of 8.6% in May is giving the market concern that the Fed […]

The news this morning is more covid restrictions in China which has caused concerns for energy demand, and this has created selling in the early trading. From John Kemp of Reuters. Britain’s economy has started to contract as surging inflation hits household and business spending. Real output fell or was […]

The news out of Shanghai that new COVID lockdowns were being put in place pressure crude price yesterday, but refined fuels products rallied higher on lower inventories for gasoline and good demand. Norway’s production is potentially going to be disrupted as there is a possible oil workers’ strike starting Sunday. […]

The API report came out and called crude oil stocks up 1.8 million barrels, gasoline stocks up 1.8 million barrels and distillate stocks up 3.4 million barrels. The average estimates for today’s DOE inventory report from the Bloomberg survey is calling for crude stocks to show a draw of 2.83 […]

The propane inventory report showed a build of 3.239 million barrels bringing total stocks to 49.572 million barrels. Last year at this time total stocks were at 48.151 million barrels. There are now 1.421 million more barrels than last year at this time. Midwest stocks were up 702,000 barrels putting […]

The energy markets rallied significantly in the morning trading hours yesterday but then sold off near the end of the trading day. Prices rallied on the news that the EU had plans to implement a partial ban on Russian oil imported by sea. This news initially was bullish for the […]

The number of oil rigs in the US was down by two in last week’s Baker Hughes oil rig count update. Total oil rigs are at 574 rigs and last year at this time rigs were at 359. Bloomberg reported that more than 1 million bpd of the country’s (US) […]

The Energy Markets are closed on Monday for Memorial Day, there is no forward contracting that day. Six OPEC+ sources stated the OPEC+ is set to stick to an oil production deal agreed to last year at its meeting on June 2 and raise July output targets by 432,000 bpd, […]

The DOE inventory report said that crude oil supplies were down 1.02 million barrels. Total stocks are now 419.801 million barrels and last year there were 484.349 million barrels a 64.548 million barrel difference. Cushing, Ok crude supplies were down 1.061 million barrels putting total stocks at 24.778 million and […]