Trump muses about Panama Canal control
December 27, 2024
The energy markets continue to be thinly traded with limited traders working and this will be the case next week as well as Wednesday will be the New Year’s Holiday and no markets that day. There will also be no contracts available on Wednesday of next week.
Donald Trump has made some remarks about the US taking over control of the Panama Canal. This has stirred up plenty of speculation in the news, but again, much like the tariff chatter, this is all posturing for hopefully further negotiations once the Trump administration begins its work.
There are some market analysts out there that are starting to see the supply situation starting to firm up and not be as robust as some have called it. This is being influence here in the near term by more stimulus out of China for their economy and the optimism in the US for our economy as a new administration take over.
The US dollar remains near a two-year high and that is putting downside pressure on price but Chinese stimulus and expected draw to crude and distillate inventories today is offering support to keep these markets stuck.
The estimates for today’s propane inventory update are for inventories to decline by 2.64 million barrels.
The news and the markets are extremely quiet here this morning. The energy markets are up a couple cents on gasoline and ULSD and crude oil is up roughly 60 cents just above 70 dollars per barrel. I would suspect like yesterday the markets would get a pullback at some point and finish the day nearly unchanged.