Morning Highlights
Morning Highlights

7-6-22 Energies Continue to Slide

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Jul 6, 2022



Outlook: Energies are mostly lower following yesterday’s big selloff. The market is seeing some continuation from yesterday as fears of a recession grip the market and funds exit the marketplace and move assets to safer and even markets. The oil market could be looking to test the 200-day moving average which is currently sitting at $92.60 nearby.  


  •  EU labels nuclear energy as a green source of energy.
  • Secretary-General of OPEC+ Mohammed Barkindo passed away at the age of 63. He was in his final weeks serving as the top diplomat for the oil alliance.
  • The US accused Iran of backtracking its negotiations to try and revive the 2015 Nuclear Deal.
  • Russia is threatening to shut down the Caspian Pipeline which supplies a large amount of oil to Europe daily.
  • Shanghai is doing mass testing after new cases of covid over the weekend.
  • Russian discounts on oil have forced Saudi Arabia to discount some of its own oil sold in Asia.
  • The API will release its inventory estimates today at 3:30 PM CT
  • The EIA report will come out tomorrow morning due to the 4th of July holiday.
  • As of 9:28 am CST: Brent crude oil down $2.86 to $99.86, US dollar index up $0.713 to 107.243 while the nearby e-mini S&P 500 futures contract is up 2 to 3836.00.


  • Inventories continue to see gains as refiners run more diesel-focused blends.
  • Russian exports of diesel are expected to remain steady at current levels for July. June saw 1.13 million tons and July is expected to be at 1.15 million tons.


  • Chinese demand has returned to near pre-virus levels.
  • The gasoline demand for the US is likely to show some strength as people traveled for the extended holiday weekend.
  • Reduced prices at the pump also play into the possible demand recovery.


  • 1.1500 Conway and Belvieu at 1.1725
  • Propane moved lower yesterday but not to the degree that the rest of the energy complex did.

Natural Gas

  • Norway resolved a strike from natural gas workers, this halted a 28% increase over the previous 5 trading sessions.
  • Indicators are expecting a higher than average build in the inventories from the EIA this week.

Crude Open Interest: Brent and WTI open interest has fallen to its lowest levels since 2015. Extreme volatility and a seller’s market have resulted in many traders sitting on the sidelines.