Market Commentary

The big surprise from yesterday was the news that OPEC+ would cut oil put by 1.0 million barrels per day in February and March. This cut is all basically being done by Saudi Arabia as Russia and Kazakhstan are allowed to increase oil production by a combined 75,000 bpd. This […]

Energy prices are trading a bit higher this morning. OPEC+ is not expected to increase production in February by 500,000 bpd. The market has pretty well accepted this as fact. OPEC+ appears to be practicing some restraint considering the possibility of more COVID lockdowns.  The OPEC Secretary General, Mohammad Barkindo, has […]

API reported crude stocks down 4.8 million barrels and the Reuters estimate for today’s DOE inventory update is down 2.6 million barrels. Bloomberg estimate down 2.450 million barrels. Gasoline in the API was down 718,000 barrels and from Reuters survey estimate is for a build of 1.7 million. Bloomberg up […]

The market was very lightly traded and very uneventful yesterday. The rest of the week looks to be more of the same with no major moves just more congestion. The market has not been able to breakout on to the upside and it will very likely need a breakdown in […]

Markets are close tomorrow Thursday and Friday so there will be NO forward contracting and no commentary. The US Commerce Department reported that the US economy grew at a record pace in the third quarter, fueled by more the $3 trillion in pandemic relief. GDP rebounded at a 33.4% annualized […]

The House and Senate passed a combined year-end spending bill and stimulus package yesterday that amounts to $2.3 trillion. President Donald Trump is expected to sign it into law. Crude oil and refined fuel product prices close much lower yesterday due to the news of a new stain of the […]

Congressional  leaders from both parties have agreed to a $1.4 trillion budget deal to fund the government until October 1. The bill includes $900 billion in coronavirus aid with a second round of smaller $600 stimulus checks, $300 per week unemployment benefits for 11 weeks, more funding for small businesses […]

New U.S. unemployment claims spiked to the highest level in three months, signaling a further delay in the US recovery. More than 20.6 million Americans are claiming some type of unemployment benefits, while untold millions mores have exhausted them entirely. Moderna’s Covid-19 vaccine won approvable from a key advisory panel. […]

The API said that crude oil stocks were up 2 million barrels compared with analysts’ expectations for a 1.9 million decline according to the Reuters survey. Crude oil stocks at Cushing, Ok were down 165,000 barrels. Gasoline stocks were up 828,000 barrels and the estimates for today are for stocks […]

Yesterday saw the first Americans getting the Covid vaccine and traders continue to see this as a means to restore energy demand so energy prices were higher in yesterday’s trading. Wall Street is also seeing the vaccine news as a positive and adding support to the equities markets. Energy markets […]

The API inventory update had crude oil stocks up 1.14 million barrels and the average estimate for today’s DOE update from the Reuters survey are calling for a decline of 1.42 million barrels. The crude oil stocks at Cushing, Ok were down 1.8 million barrels.  Gasoline stocks as reported by […]

The Baker Hughes Rig Count said that crude oil rigs were up 5 to a total of 246 rigs and this is the 11 weekly build out of the last twelve weeks. Iran prepares its oil installations for full production and sale of its oil within 3 months in anticipation […]