Markets were relatively unchanged Wednesday as we continue to trade sideways. A result of upward pressure from OPEC cuts and fund lengths matching downward pressure over fears of domestic supply growth, front month WTI continues to trade in the very narrow $2 range ($52-$54). It has spent most of the last four trading sessions inside the one dollar range of $53-$54. Read more
Markets were fairly quiet on Tuesday, as many still had their eyes on political spheres, both nationally and locally. After a heavy few days of energy news, topics such as the Colonial Pipeline, OPEC, and refinery issues faded. Futures spent most of the day oscillating on either side of Monday's settle. As a result, yesterday's settles were not too far from those the prior day. Read more
Wednesday's price action continued to follow through from the strength seen over the past week. Markets started the day stronger, following Tuesday night's API report, which showed a 3.8 million bbl draw of crude oil. Although the products were mixed, distillate drew and gasoline built, the overall signal was bullish as the crude oil draw pulled the market higher overnight Tuesday and into Wednesday morning. Read more
Overnight Wednesday and into Thursday morning the energy market was weaker, as participants took a break from Wednesday's torrid pace. However, despite some seeing the OPEC news as a non-event, during U.S. market hours on Thursday, prices were pulled higher again.
PLUS: Hurricane Matthew in the Caribbean escalated to a Category 2 Hurricane with maximum sustained winds of 100 mph at 2:00am this morning. Read more
Oil prices closed moderately higher on Tuesday, dismissing Monday's electronic trading volatility, but remain poised to bounce after declining towards the tail end of August. The Monday's headline grabbing news about a tacit agreement between Russia and Saudi Arabia on future oil production sent the market into a bullish tizzy, though that price surge proved very temporary. As most of the U.S. returned to their desks on Tuesday, prices were back to unchanged from Friday and didn't deviate much from that during the day.
Markets followed through on the previous day's weakness, to finish lower across the board. Several small factors led to the downward pressure on Wednesday. Market participants are now less optimistic about an OPEC out freeze (or even how effective this would be with Saudi Arabia already producing at record levels). Further, the U.S. Dollar moved higher yesterday, reaching its highest level since August 9th, which exerted downward pressure on commodity prices. Read more
Despite a stronger-than-expected jobs report, the oil market ended the day on Friday relatively unchanged with some stability just above $40 in the front. The Department of Labor, in its monthly employment review, reported more than 250k jobs were added to the economy in July, the strongest report in recent months. Such news is bullish for oil demand, and price. However, other than a mini-spike not long after the report was published, the oil market seemed to discount the news. After a few weeks of price malaise, oil did find some firm footing last week (after settling below $40 for the first time in nearly four months) and did manage to post a gain for the week. Oil supply builds could become the norm in the coming weeks, however, as refiners may trim activity due to economics (poor margins) and maintenance (post-summer gasoline season). Read more
Oil prices rose for the second straight day, the first time that has happened in nearly three weeks, continuing the subtle flat price bounce that occurred immediately following the release of this week’s Department of Energy (DOE) inventory summary. The Wednesday rally was led, not surprisingly, by RBOB (and the reported three million barrel draw in gasoline stocks) but yesterday’s move was ushered higher, surprisingly, by the Heating Oil contract. The sum of the two days’ worth of gains is WTI up over two dollars, providing a respite to the oversupply conundrum that has pressured prices lower over the past several weeks. Read more
Front month WTI reclaimed the $40 market on Wednesday, as the market was led higher by a strong RBOB contract and by technical buying in defense of a dropping market. The Department of Energy (DOE) inventory report was moderately bearish overall, with an expected large build in crude oil stocks (again), though the market instead chose to focus on the very large gasoline draw. Recent comments by energy companies about refinery margins and operations indicate looming (or perhaps ongoing) run cuts, which should manifest builds in oil stocks (less demand) and draws in products (less supply). The DOE data yesterday matched that hypothesis, though it was only one week’s worth of data. Read more