• Supply
  • Social Media
VisitTAC - The Arnold Companies
Customer LOGIN

Early Rally Turned Into Biggest One-Day Sell-Off

Tuesday, Mar 5 2019
Market Talk

The early rally in US stock markets Monday turned into the biggest one-day sell-off in a month, and that reversal knocked the wind out of energy prices as well. Most NYMEX futures did manage to recover later in the day to end with gains and have resumed a modest climb overnight as we await the weekly inventory reports.

There’s an argument that Monday’s reversal was a sign of “deal fatigue” as the US/China trade story has worn out its welcome in the bull market camp. There’s also an argument that weak economic data coming out of China was to blame, as the tariffs put in place last year seem to have done plenty of damage.

A stronger US Dollar was also getting some credit for the pullback in energy futures, although as the chart below shows, Oil prices haven’t been reacting to currency moves much in the past year.

The EIA published a note this morning explaining how record-high inventories and tighter crude spreads drove gasoline cracks for USGC refiners to their lowest levels in more than 4 years. Not mentioned explicitly in the note is that the relative complexity of those same refineries should also be a benefit later this year as the world attempts to comply with the IMO’s new Sulphur regulations.

Never let a good crisis go to waste: Those weak margins, and expectations for better days to come in 2020, explain why there have been numerous refinery maintenance projects that have seen their schedules moved up in recent weeks.

CLICK HERE for a PDF of today's charts

News & ViewsMarket Talk

News & Views
Latest Posts

KTBS 3 Spotlight on TACenergy Leadership COO Fred Sloan - Sharing Thoughts on Changes in the Gas Market
Go Rentals Opens 10 New Locations with Partner, TAC Air
Tac Air's new facility features B17-G model airplane, Military Situation Room
TAC Air B-17G Model Brings Nostalgia and Tears

News & Views

Market Talk
Latest Posts

Market Talk

TACenergy logo
Sales:  800-375-FUELSupply & Logistics:  800-808-6500

Get in Touch

Sign up to receive market talk updates in your inbox each day.
Establish a credit account.
Apply For Credit
Need to make a fuel order today?

Follow us

  • Supply
  • News & Views
  • Market Talk Updates
  • Social Media
  • Contact a Representative
  • Customer Login
  • Apply For Credit
Find Your Next Great Role With TACenergy.
Explore Careers
  • Privacy Policy
  • Terms of Use
  • Employee Login
  • Sitemap
TACenergy, LLC © 2022. All Rights Reserved.