Market Commentary

The API inventory report put out yesterday did show big builds in crude and distillates but a surprise draw in gasoline stocks which led some to believe that maybe gasoline demand may be coming back after the lock downs. The report called crude oil stocks up 10 million barrels and […]

Crude oil was helped to trade lower yesterday by a growing fear of owning the front month June WTI crude oil contract and the ongoing concern that storage is full. Many trading companies are both asking and forcing their clients to get out of the front month June contract for […]

The Baker Hughes Rig count showed that oil rigs were down 60 to a total of 378 oil rigs. Last year at this time total rigs were at 805 a 427 rig difference. The rig count has fallen drastically in the last few weeks and a decline in production is […]

The reports continue to talk about storage getting full at a very rapid pace and the actions that will be taken by OPEC+ starting May 1st are not near enough and they will likely have to do something prior to that date. Nigeria has shut down its crude production because […]

The inventory report from the private firm API was released yesterday and it did show another round of big builds to inventory. Crude oil stocks were up 13.2 million barrels and the stocks of crude oil at Cushing, Oklahoma the NYMEX WTI crude oil futures contract deliver point were up […]

The headlines and stories on TV were all about the collapse in the energy market and reports that this was the first time WTI crude oil future had traded negative. There had been talk of single digit crude oil prices, but no one saw negative $40 dollars per barrel coming. […]

The Baker Hughes Rig Count released Friday called oil rigs down 66 to a total of 438 rigs. This was the fastest decline since March of 2015. Last year at this time there were 828 oil rigs in operation. Crude oil is getting sold off hard today as global storage […]

WTI crude oil closed at an 18 year low yesterday slightly below the $20 major support level. This was the result of a bearish OPEC monthly report put out yesterday, a bearish International Energy Agency monthly report released Wednesday, and a very bearish EIA weekly petroleum inventory report released Wednesday. […]

The inventory report put out by the private firm API was released yesterday afternoon and it called crude oil stocks up 13.1 million barrels. This compares with the estimates for today DOE report to showed crude stocks up 11.7 million barrels. The API called gasoline stocks up 2.2 million barrels […]

Despite the news of a historic OPEC+ production cut that with the help of other G20 nations is being promoted to have a production impact of near 20 million bpd the energy market had a pretty uneventful day as the headlines about COVID-19 still leave many unanswered questions and the […]

Over the weekend OPEC+ did get to a historic 9.7 million bpd production cut. The length of the agreement is longer than originally expected according to Nigeria. 9.7 million bpd from May 2020 through June 2020. 8 million bpd July 2020 through December 2020. 6 million bpd January 2021 thru […]

Just a reminder that the energy markets are CLOSED today for Good Friday and there are no forward contracts available. Well all day yesterday everyone heard about the OPEC+ cut. 10 million, 15 million maybe even 20 million all the headlines read. At the very last minute late in the […]