Outlook: The energy complex was originally seen falling lower during overnight trade but has since reversed some of its earlier losses. The front month WTI contract now sits slightly in the green as support stems from macros and speculation regarding Iranian nuclear talks. WTI futures managed to capture strong gains yesterday and now sit near one-week highs. The U.S. and Iran are still scheduled to resume talks this week. U.S. Secretary of State Blinken stated that they have not yet seen signs of Iran complying with nuclear commitments in order to have sanctions removed. Iran’s top negotiator also reported that serious issues still needed to be worked through. The markets seem to have brushed off the possible return of Iranian supply to the markets for now. Additionally, support stems from strong macros and economic recovery with equities also rallying higher this morning. Several airline companies have recently reported increasing costs in fares as travel demand has been seen spiking. Mobility trends from Apple devices have also shown a strong uptick in driving demand in recent weeks as restrictions were lifted. Overall, a possible increase in Iranian supply doesn’t seem too detrimental to the global market as strong signs of returning demand is expected to prop up prices in the long run.
- U.S. new covid cases were seen dropping to their lowest level since March 27th of 2020. Additionally, the CDC reports that over 50% of adults are vaccinated in the U.S. and about 61% have received at least one dose.
- The United Kingdom has reportedly declined to halting new oil exploration in the North Sea despite the IEA’s climate warning released last week.
- Reuters has reported that the Venezuela state run oil company PDVSA has restarted operations after a gas supply shortage at the Jose oil export terminal paused operations last week.
- Cyclone Yaas, equivalent to a category 3 hurricane, is set to hit India tomorrow. This is the second cyclone to hit India in less than two weeks as the country also deals with its current outbreak of Covid-19 cases.
- The June crude oil contract is trading $0.32 higher at $66.37. The 20-day and 100-day moving averages are $64.78 and $59.42 respectively. The 14-day RSI is 57.36%.
- As of 8:50 am CST: June Brent is up $0.08 at $68.54, the U.S. dollar index is 0.160 lower at 89.684, while the nearby e-mini S&P 500 futures contract is up 5.00 points at 4198.75
- Planting progress for corn in the U.S. jumped by 10% to 90% in the last week while soybean planting progress was reported at 75% complete. Both progress values are above the 5 year averages.
- The June ULSD contract is trading $0.0053 lower at $2.0367. The 20-day and 100-day moving averages are $2.0043 and $1.8114, respectively. The 14-day RSI is 57.87%.
- Currently today’s AAA national gas price average sits around $3.036 per gallon, down slightly from yesterday’s average as we head into memorial weekend.
- The June RBOB contract is trading $0.0054 lower at $2.1123. The 20-day and 100-day moving averages are $2.1112 and $1.9005, respectively. The 14-day RSI is 54.55%.
- At last look, Conway propane was unchanged, trading at $0.82000. Mt. Belvieu was up $0.00250, trading at $0.85000.
- Asia is currently on track to import 22.37 million tonnes of LNG in May as imports hold strong despite the current Covid issues in India and Japan. India’s imports are currently on track to reach 2.01 million tonnes, up from April’s imports of 1.86 million.
- The May Natural Gas contract is trading $0.014 higher at $2.971. The 20-day and 100-day moving averages are $3.008 and $2.868, respectively. The 14-day RSI is 51.88%.
|As of 8:50 AM CST||WTI June||ULSD June||RBOB June||Nat Gas June|