Market Commentary

The DOE report on inventory had crude stocks up 4.58 million barrels putting total stocks at 418.542 and last year there were 492.426 million barrels a difference of 73.884 million barrels. US production was up 500,000 BPD to a total of 11.100 million BPD.    Cushing crude stocks were up 131,000 […]

The Baker Hughes Rig Count number released on Friday had crude oil rigs up 10 to a total of 411 total oil rigs. Last year at this time there were 179 rigs. There has been a lot of talk about shale oil companies being very disciplined and having financial restraint […]

The energy markets were higher in yesterday’s trading mainly being pushed higher by the overall bullish DOE inventory report. Crude stocks were reported down 6.4 million barrels which was much more than the roughly 3 million barrels estimate. Crude stock fell to the lowest levels since September 2019. Crude stocks […]

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 […]

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 […]

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 […]

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 […]

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 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 […]

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, […]

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 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 […]