Market Commentary
Lower Worldwide Demand is Pressuring Crude and Fuel Prices
August 23, 2019
Crude oil and refined fuel product prices closed lower yesterday with RBOB gasoline leading the way down by 1.6% for the nearby futures trading month. The market yesterday was again focused on the lower world demand and the fact that there are currently ample supplies of crude oil around the […]
Russian Oil Company Moves from Dollars to Euros
August 22, 2019
The DOE inventory report called crude stocks down 2.73 million barrels and this was not a big shock as it was in line with expectations and the outlook for stocks. Stocks at Cushing, Ok were down 2.5 million barrels and this would normally be supportive to the market but this […]
President Trump is Evaluating Ways to Stave Off a Recession
August 21, 2019
The estimates from the Bloomberg survey for today’s inventory report on average are calling for crude stocks to be down 1.392 million barrels. Gasoline stocks are estimates down 73,000 barrels and distillates to be up 35,000 barrels. Refinery run are estimated to be down 0.1% from last week’s number of […]
Drone Attack Causes Fire at Gas Plant
August 20, 2019
A drone attack by the Houthi group on an oilfield in eastern Saudi Arabia on Saturday caused a fire at a gas plant, adding to tension in the Middle East. However Saudi Aramco said oil production was not affected. This event over the weekend helped to offers some support to […]
OPEC Numbers Look Bearish
August 19, 2019
Baker Hughes reported that oil driller in the US increased the number of rigs drilling for oil by 6. Total rigs are at 770 compared to 869 last year at this time. Canadian oil producers added 7 rigs drilling for crude oil to bring the total number of rigs to […]
Speculation of a Potential Recession is Growing
August 16, 2019
The market continues to be impacted by so much uncertainty with a host of issues and concerns surrounding this market. Traders continue to struggle with weak economic data and the impact that could have on demand, the trade war with China, OPEC+ talking about cutting more production, reports of possible […]
Trump Delays Newest Set of Tariffs
August 15, 2019
The DOE reported that crude oil stocks were up 1.58 million barrels when the market was expecting a draw of over 2 million barrels. Cushing, Ok crude oil stocks were down 2.54 million barrels. Gasoline stocks were down 1.412 million barrels and distillates stocks were down 1.938 million barrels. Propane […]
Crude and Refined Fuel Were Up 4 Percent
August 14, 2019
Crude oil and refined fuel product prices all closed up by more than 4% yesterday, which was mainly driven by news that some of the new tariffs of U.S. imports from China will be postponed until December 15th. To benefit U.S. consumers for holiday shopping, U.S. tariffs on Chinese goods […]
Saudi Arabia Contemplates IPO for Aramco
August 13, 2019
Crude oil prices closed up slightly but refined fuel product prices fell slightly yesterday. The spread between WTI crude oil and Brent crude oil closed at only $3.64, a very low point for this year. Rising crude oil prices were mainly driven by Saudi Arabia wanting an IPO for Aramco […]
Unrest in Hong Kong Has Raised Concerns for the Economy
August 12, 2019
The Baker Hughes crude oil rigs count was down by 6 rigs putting the total number of crude rigs at 764. This compared to 869 rig last year at this time. Rigs drilling for natural gas were done 2 to 169 compared to 186 rigs a year ago. Canadian producers […]
Crude Imports to China Are on the Rise
August 9, 2019
Crude oil and refined fuel products prices closed higher yesterday mainly driven by a large rise in China crude oil imports, a large rise in US equities, Saudi Arabia vowing to keep exports lower the next few months, Saudi Arabia wanting to discuss with OPEC members the recent price decline, […]
Propane Stocks Are Up Substantially YOY
August 8, 2019
Propane stocks in the inventory report were up a big 2.852 million barrels. Propane stocks in the Midwest were up 507,000 barrels and in the Gulf Coast stocks were up 1.962 million barrels. Prices did move lower for prompt propane but the winter month values were more stubborn to go […]