Outlook: The energy complex has continued to fall lower this morning, marking the fifth consecutive day of losses in the market. Weakness continues to stem from supply and demand concerns after yesterday’s inventory report. Macro woes also pressures markets after an unexpected bearish unemployment report released this morning. The Labor Department reported that jobless claims increased to 770,000 in the last week, up from 725,000 in the previous period. Investors had expected another decrease in claims after recent loosening of covid-19 restrictions. The market also remains watchful of developments regarding the AstraZeneca vaccine after many EU countries halted use. The WHO has stated that the countries should still use the AstraZeneca doses, but markets will stay more warry until vaccination paces pick back up. Yesterday’s Federal Reserve commentary did help support markets for a short period, but indices have already slipped lower again this morning after the 10-year yield surged up to a new 14 month high. Both energy and equity markets will likely remain on the defensive for now until vaccine supply issues are sorted out.
- According to a statement from Texas Attorney General Ken Paxton, several U.S. states including Texas are now suing the Biden administration for revoking the permit for the Keystone XL pipeline.
- Saudi Arabia’s crude exports were seen rising to 6.582 million barrels in January, from 6.495 million barrels in December. Official data was sourced from the Joint Organizations Data Initiative.
- Concerns regarding covid-19 in the EU continued to pressure markets. German has recently reported an increasing trend in cases while both France and Italy have tightened covid restrictions.
- Schlumberger, an oilfield services company, announced this morning that they would be launching a lithium plant in Nevada in order take advantage of the increasing demand for EV batteries.
- The April crude oil contract is trading $2.67 lower at $61.93. The 20-day and 100-day moving averages are $63.10 and $51.27, respectively. The 14-day RSI is 51.58%.
- As of 9:45 am CST: May Brent is down $2.38 at $65.62, the U.S. dollar index is 0.400 higher at 91.842, while the nearby e-mini S&P 500 futures contract is down 22.75 points at 3,940.75.
- The April ULSD contract is trading $0.0661 lower at $1.8400. The 20-day and 100-day moving averages are $1.8832 and $1.5492, respectively. The 14-day RSI is 49.85%.
- Distillate exports from China were seen down by 0.9% year on year for January and February while jet fuel exports were down by a whopping 70.1%.
- Cash values for group 3 ULSD are seeing the most weakness this morning with group 3 basis levels sitting around 6 over now, down about 15 on the week and 1.5 on the day.
- The April RBOB contract is trading $0.0610 lower at $1.9861. The 20-day and 100-day moving averages are $2.0069 and $1.6076, respectively. The 14-day RSI is 53.75%.
- Gasoline exports from China were seen rising by 30.1% in January and February when compared to the same months last year. Analysts are expecting that exports will increase again in March as refiners try and reduce inventory pressures and profit off of increasing demand.
- Amazon has now begun testing out electric vans for the delivery vehicles in San Francisco. The delivery vehicles are being manufactured by the startup company Rivian.
- Propane prices are trading slightly lower this morning. At last look, Conway propane was down 0.0025, trading at $0.8475. Mt Belvieu down 0.0100, trading at $0.9100.
- The April Natural Gas contract is trading $0.042 lower at $2.486. The 20-day and 100-day moving averages are $2.749 and $2.730, respectively. The 14-day RSI is 32.73%.
- The Weekly Natural Gas Storage Report released by the EIA this morning showed a draw of 11 bcf for U.S. natural gas inventories for the week ending March 12. Reuters analysts had estimated we would see a draw of just 9 Bcf.
|As of 9:45 AM CST||WTI April||ULSD April||RBOB April||Nat Gas April|