Outlook: The energy complex experienced mixed trade during the overnight session with crude prices now sitting in the green. Products are seen trading on either side of even and currently sit in negative territory. Crude futures are poised to see their fifth consecutive week of gains, with WTI currently sitting about 2.6% higher on the week. Strong fundamental support continues to stem from economic recovery and tightening supplies. Additional strength today derives from equities as the S&P 500 sets another new record and is set to see its best week since April. Next week OPEC+ is scheduled to meet and discuss the possible further unwinding of production cuts for August. Many analysts expect that the group will add a small portion of production back into the market, but focus will remain on the official decision scheduled to come out next week.
- President Biden announced that an infrastructure deal had been struck with a bipartisan group of senators on Thursday. The project includes investments in transportation, roads, bridges, and some electric vehicle infrastructure.
- The agreed upon bipartisan infrastructure deal is expected to be funded partially by a $6 billion sale from the U.S. emergency oil reserve. The deal will also be financed by a sale from the Strategic Petroleum Reserve, but the amount of money expected to be raised from this has not been reported.
- According to data from Ursa Space Systems, Chinese crude inventories, including both commercial and strategic reserves, are at their lowest level since early February.
- A key inflation indicator, the core personal consumption expenditures price index, rose by 3.4% in May compared to a year ago. This is the largest yearly increase since 1992.
- The July crude oil contract is trading $0.35 higher at $73.65. The 20-day and 100-day moving averages are $70.60 and $63.22 respectively. The 14-day RSI is 72.42%.
- As of 9:00 am CST: July Brent is up $0.19 at $75.75, the U.S. dollar index is 0.281 lower at 91.533, while the nearby e-mini S&P 500 futures contract is up 6.75 points at 4262.75.
- The recently agreed upon infrastructure plan is expected to include $109 billion for roads, bridges, and other major projects, along with $66 billion in passenger and freight rail.
- The July ULSD contract is trading $0.0033 lower at $2.1590. The 20-day and 100-day moving averages are $2.1197 and $1.9288, respectively. The 14-day RSI is 66.63%.
- In regard to the new infrastructure plan, Biden stated that he would not raise the gas tax or electric vehicle user fees in order to help pay for the plan.
- The July RBOB contract is trading $0.0052 lower at $2.2757. The 20-day and 100-day moving averages are $2.1992 and $2.0089, respectively. The 14-day RSI is 70.22%.
- Bullish sentiment continues in the propane market with prices up by more than 5 cents this week. We expect this trend to continue unless we start seeing strong increases in inventory or slowing exports.
- At last look, Conway propane was up $0.00250, trading at $1.03250. Mt. Belvieu was unchanged, trading at $1.04000.
- The July Natural Gas contract is trading $0.046 higher at $3.464. The 20-day and 100-day moving averages are $3.220 and $2.969, respectively. The 14-day RSI is 71.04%.
|As of 9:00 AM CST||WTI July||ULSD July||RBOB July||Nat Gas July|