Outlook: Energies are trading on both sides today as news from the FED is being anxiously awaited. Russia and Putin made headlines by calling up a number of reserve troops to help in the fight against Ukraine. The market seems uneasy and has been looking for direction the last week. either of these stories could win out and set the market in a new trend or they may even out, and we continue to trade flat moving forward. My prediction is that demand will increase, and the market could see some slight movement higher.
Crude
- Tropical Storm Fiona is the strongest of the storm season on the Atlantic side of the US. It could have the potential to threaten refineries.
- Putin called up 300,000 reserve troops into service yesterday as he revamps his efforts to wage war in Ukraine.
- An industry leader estimates the cost of the EU windfall-tax bill could be more than 1 billion Euros.
- The FED is likely to announce another interest rate hike later today.
- European leaders are calling for the seizure of more Russian-owned refineries to satisfy the union’s energy crisis.
- Norwegian production is down 3.1% below expectations
- Reuters is projecting a 2.2 million barrel build, The API is predicting a 1.035 million barrel build.
Diesel
- There was a refinery Fire at the BP facility near Toledo Ohio late yesterday afternoon. The facility has a capacity to refine about 160,000 barrels of crude oil per day.
- China has approved a 15 million ton export quota that they will require individual companies to meet.
- Reuters is projecting a 400,000 barrel build, while the API is predicting a 1.538 million barrel build.
Gasoline
- The streak of lower prices at the pump ends at 98 days in a row lower after prices saw a modest increase yesterday.
- The Exxon refinery in Gravechon France is currently limited in capacity due to a strike by workers at the plant.
- Reuters is projecting a 400,000 barrel draw, while the API is predicting a 3.225 million barrel build.
Propane
- 1.0300 Conway and Belvieu at 1.0100.
- The market is sticking in the same range as crude and has done so for some time now.
Natural Gas
- A report shows that China has enough coal reserves to service the country for the next 50 years at least.
- Germany plans to inject 8 billion dollars into the country’s gas company Uniper in a historically large bailout to nationalize the Company.
- Russia has yet to allow any further flows through the Nordstream line providing Europe with little to no Russian natural gas.
98 Days of Lower Gasoline: The US national average price for a gallon of gas moved higher for the first time in 98 days yesterday. As the futures have fallen so has the price at the pump. While consumers have felt the relief the lower prices are likely to bring some demand back into the market as it becomes more affordable to get out and travel.
