Market Commentary
Refineries Mostly Spared By Hurricane Laura’s Destruction
August 28, 2020
The reports that have come in so far have indicated that Hurricane Laura has spared a majority of refining capacity, and it is expected to only impact 1.0 to 1.2 million bpd versus 2.6 to 3 million bpd previously estimated. The other thing that needs to be watch is the […]
Hurricane Laura Slams Louisiana
August 27, 2020
Crude oil and refined fuels products closed lower yesterday due to investors taking products after the market rallied up to 5 months highs. Also helping the market to trade lower was the pandemic causing lower demand, and potential for lower oil demand and power demand due to Hurricane Laura hitting […]
Market Awaits Outcome of Hurricanes
August 26, 2020
The inventory update from the API came out yesterday afternoon and it said that crude stocks were down 4.5 million barrels with the barrels at Cushing, Ok down 646,000. Gasoline stock showed another big decline with stock down 6.4 million barrels and distillates were up 2.3 million barrels. The Bloomberg […]
Hurricanes Laura and Marco Shut Down Gulf Oil Production
August 25, 2020
Crude oil and refined fuels products closed higher yesterday driven by the news of Hurricane Marco and Laura, which has shut in offshore production and onshore refinery operations. Gasoline seems to be the big concern as at one point yesterday it was up almost $0.10 cents. It is being reported […]
Gulf Coast Braces for Twin Storms
August 24, 2020
This morning the energy markets are higher with two large storms approaching the US Gulf Coast being the news driving price higher. This will be the biggest market news over the next few days. Hurricane Marco is expected to make landfall this evening in Louisiana and tropical storm Laura could […]
Some OPEC Members Not Complying with Production Cuts
August 21, 2020
Some members of OPEC have been asked to increase production cuts in August and September to make up for past over production. Reuters reports that the OPEC+ document says that some members would need to cut an extra 2.31 million barrels per day for a month to make up for […]
Gas and Distillate Demand Significantly Below 10-Year Trends
August 20, 2020
The US Energy Information Administration said US crude oil stockpiles fell last week even as net imports increased sharply, while fuel demand fell as well. Crude inventories fell by 1.6 million barrels in the week to August 14th to 512.5 million barrels. Net US crude imports increased by 1.1 million bpd […]
Market Eyes Tropical Storms in the Gulf
August 19, 2020
The inventory report from the API had crude oil stocks down 4.3 million barrels. The Reuters estimate for today’s EIA number is that stocks will be down 2.7 million barrels. Crude stocks at Cushing, Ok were down 599,000 barrels. API called gasoline stocks up 5 million barrels compared with today’s […]
US Negotiates Vaccine Purchase
August 18, 2020
The market has been pretty uneventful and stuck in a tight range with high intraday volatility. RBOB futures appear that they still might have one more pop higher left before expiration at the end of this month. ULSD and WTI crude oil seems really stuck in their ranges and any […]
Chinese Trade Talks Postponed
August 17, 2020
The United States and China postponed talks there were to review the progress made after six-months of the phase-one trade deal. This is not a positive for US and China relations. Despite these concerns Reuters reports that China’s state-owned oil companies have tentatively booked tankers to transport at least 20 […]
Stimulus Talks Remain Gridlocked
August 13, 2020
Crude oil stocks in the EIA inventory report were down 4.51 million barrels putting total stocks at 514.038 million barrels and last year at this time there were 440.510 million barrels 73.574 more barrels than last year. Cushing, Oklahoma, the delivery point for the NYMEX WTI crude oil futures contract, […]
EIA Releases Energy Outlook
August 12, 2020
The API inventory report was bullish with draw across the board and in most cases bigger than expectations. Crude was down 4.4 million barrels and the crude stocks at Cushing, Ok were up 1.1 million barrels. Gasoline stocks were down 1.3 million barrels and distillates were down 2.9 million barrels. […]