Market Commentary

Bloomberg reports that Vitol Group said inventories have been falling sharply and will continue to decline this year. Trafigura Group said the market will go back into a surplus. Both companies forecast demand to slow down and for the next few months to see increased volatility and then demand will […]

Crude prices are under some selling pressure here in early morning trading as reports are positive that crude oil production out of Libya is trying to reestablish itself. Commander Khalifa Haftar said is committed to ending months-long blockade of oil facilities. He wants to get all port open. This has […]

Propane stocks built by 2.158 million barrels this was less than the expectations, but total stocks are now at 97.380 million barrels near all-time highs. Midwest stocks were up 595,000 barrels putting total stocks at 26.449 million barrels 393,000 below the five year average and 519,000 below last year. Gulf […]

The inventory report from the API said that crude stocks were up 3 million barrels  to a total of 504.1 million barrels and the estimates for today’s DOE inventory update from Reuters is crude stocks down 1.4 million barrels. Cushing, Oklahoma crude stocks were up 2.6 million barrels. Gasoline stocks […]

Crude prices closed down significantly in yesterday’s trading down roughly 6 to 7%. WTI crude oil settle down just over $3 dollar at $3.01. The rising cases of COVID-19 in the United Kingdom, Spain and several parts of the Unites State is causing many energy analysts to speculate on weakening […]

In Wednesday’s inventory report the EIA also reported that implied demand for gasoline was down by 8.9%, distillate demand was down by 5.1% and jet fuel demand was down by 47.1% based upon a 4-week average versus last year at the same time. With the end of the driving season […]

The propane inventory report showed a big build to inventories of 4.389 million barrels putting total stock at 95.222 million barrels. Current total stock levels are 2.366 million more than last year. Midwest stocks were up 598,000 barrels putting total stocks at 25.854 million barrels 877,000 less than last year. […]

The inventory update from the API showed draws across the board. Crude stocks were down 6.4 million barrels and the estimates for today’s DOE numbers from the Reuters survey is for stocks to be down 1.9 million barrels. In the API report gasoline stocks were down 5.8 million barrels and […]

The energy markets are a big fuzz ball of indecision just waiting on something. The longer the markets congest near current levels the bigger the potential move once it breaks. On the downside you have large inventories and concerns about demand due to C)VID. On the side of support for […]

The prices of crude oil and ULSD are trading slightly higher this morning but overall, the market has been in a very small trading range. Generally, the news about damage to refineries is better than expected as Port Arthur was missed and most of the direct hit was to the […]

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 […]

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 […]