Market Commentary

As more places around the globe start to reopen after shutdowns the outlook for many investors and traders is positive and the market is up this morning on this optimism. Production cuts have happened faster than many thought and demand is slowly coming back with the reopening creating the thought […]

The market had a strong up day yesterday as the bulls jumped on the bandwagon after a selloff that took prices to the low end of the market’s trading range and have now rallied back to the top of that range. Many are saying the bullish inventory report, the first […]

The comments from Federal Reserve Chairman Jerome Powell were concerning to the market and created selling pressure. The worrisome outlook he gave for the economy and talk that more support would be needed to keep the economy going were enough to see energy prices pushed lower despite what many saw […]

The inventory report from the API said that crude stocks were up 7.6 million barrels and that the crude stocks at Cushing, Ok were down 2.3 million barrels. Gasoline stocks were called down 1.9 million barrels and distillate stocks were up 4.7 million barrels. Estimates from Reuters for today’s DOE […]

There are several members of OPEC that are making voluntary additional production cuts to try and remove the glut of oil in the market and support prices. A Saudi Arabian energy ministry official said that the ministry has directed Saudi Aramco to cut its crude oil production for June by […]

The Baker Hughes Rig Count was down 33 oil rigs with the total oil rigs down to 292 rigs. Last year at this time the US had 805 crude oil rigs online. Crude oil rigs have fallen by a total of 391 rigs over the past 8 weeks. The US […]

Crude prices were higher in early trading yesterday as news of Saudi Arabia raising their selling price for oil and an increase in Chinese export for April were supportive news. Price did ease off the highs as the market got to the end of the days as more global demand […]

Gasoline demand was up, and distillate demand was down in the weekly DOE inventory update. Distillate stocks increased by 9.52 million barrels and that put selling pressure on the market. Gasoline stocks were down 3.16 million barrels and that fact was overall supportive to gasoline which sold off less than […]

The API  report out yesterday afternoon called crude oil stocks up 8.4 million barrels compared with estimate for today’s DOE report for a build of 7.8 million barrels from the Reuters survey. API said that crude oil stocks at Cushing, Ok were up 2.7 million barrels.  Gasoline stocks were down […]

The US and China have been getting into a dispute about the outbreak of the coronavirus. Secretary of State  Michael Pompeo has said that the virus likely came from a Chinese lab in Wuhan. He has stated that the evidence continues to point in that direction. The World Health Organization […]

The Baker Hughes Rig Count on Friday showed the oil rigs fell by 53 to a total of 325 rigs. Oil rigs are down 358 (52%) in the last seven weeks. Last year at this time there were 807 oil rigs a difference of 482 rigs. The impact of this […]

According to a Reuters survey, OPEC’s output in April increased to the highest level since March of 2019. Output by the 14-member group in April averaged 30.32 million barrels per day. The largest increase in supply came from Saudi Arabia, which produces a record 11.3 million barrels per day. The […]