There seems to be a trend going on right now with inventory levels and the builds we have seen in the U.S. OPEC is saying all the right things to keep the market somewhat level but the elephant in the room is consumption. Hamza Khan, head of commodities strategy at ING has said, “You’ve got […]
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The oil patch has seen a refined product glut since 2015, but that glut is weakening on the distillate side which could prop up prices. The EIA reported in its February edition of the Short-Term Energy Outlook that distillate (diesel and heating oil) demand will increase by 80,000 barrels per day this year compared to […]
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The market is seesawing today after the Department of Energy (DOE) released petroleum statistics this morning. Crude supplies built by 9.5 million barrels (MMb). Gasoline supplies built by 2.9 MMb, distillate supplies drew by 0.7 MMb. Crude oil inventories in Cushing, OK drew by 0.7 MMb, and refinery runs dropped 2.3% to 85.4% of operable […]
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With drilling at high levels in the United States and production cuts taking place across the globe, it makes one wonder whether the bears or bulls will win at this game of “tug of war.” As discussed in my blog last week, $50 crude has been said to be the “break-even point” for majors such […]
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We continue to wear our rally caps today as oil prices rise for the 4th consecutive day. This is attributed to more news that oil supply is shrinking and also that the stock market is rallying on news that President Trump may be releasing a tax cut announcement in the coming weeks.
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Oil prices are experiencing some downward pressure today, as statistics are showing low production levels for OPEC. As we start to see the bears come out of the woods, you may start to wonder why prices have not seen a significant drop for quite some time now. Why is this, you ask?
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The market is up slightly today, propelled by escalating tensions between the U.S. and Iran, as well as bigger than expected production cuts by Kazakhstan. As of 11:00 a.m. ET, WTI crude is up about half a penny and heating oil and RBOB are up about a penny and a half. It’s been a while […]
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Punxsutawney Phil kicked off the day by seeing his shadow and letting us know we will have six more weeks of winter. Whether this pleases you or upsets you, take it with a grain of salt. According to the Pittsburgh Post-Gazette, “NOAA’s National Centers for Environmental Information notes that Phil’s forecasts have shown ’no predictive […]
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As mentioned in this space yesterday, one of the oil market’s primary concerns these days is the battle of OPEC cuts vs. U.S. shale production. Today, the cuts are winning. The market is up on data showing that OPEC has decreased production by just over 1 million bbls/day, which is 88% of its stated production […]
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The recent give and take, back and forth oil market seems to be in a giving mood this morning after yesterday’s “taking” trading day. The market closed up yesterday across the board with crude settling at $53.78 per barrel, up slightly over a dollar. Heating Oil closed at $1.6409/bbl and RBOB finished the session at […]
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