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

FED Signals That Days Of Money Printing May Eventually End

Friday, Jun 18 2021
Market Talk

A big rally in the US Dollar after the FED signaled that the days of money printing may eventually end has become the big story this week that has sent a wave of “Risk Off” selling pressure across numerous markets.  The selling this week sets up a pivotal test for energy futures in the back half of the month.  If they can hold on around current levels and find a bid, the longer term upward trends are still intact, but if they drop another couple percent from here that opens the door on the charts for a 20-30 cent drop for products this summer.

Commodities in general have been under heavy selling pressure this week, with several wiping out their entire 2021 gains as supply chains start to catch up to the rapid swings in demand.  While crude oil has managed to buck that trend so far, WTI is now giving up its gains for the week and may struggle to resist the pull of refined products and other commodities if the dollar rally continues.   The selloff in corn & soybeans has added to the downward pressure in RINs that wiped out a third of their value in just 4 days.  We did see values reach a temporary floor in Thursday’s session, but sellers moved offers lower in the afternoon suggesting the move lower may not yet be done.

It was a Reuters report that kicked off the huge sell-off in RINs one week ago, and a new report highlights the large obligations refiners have outstanding as of their Q1 earnings filings.  While this week’s sell-off no doubt has many refiners breathing a little easier as Renewable Volume Obligation (RVO) values dropped to $.16/gallon of transportation fuel produced from $.23, prices are only back to where they ended the 1st quarter, so from a value standpoint, those refiners are no better off now than they were as of those reports.    

Tropical Storm Claudette is expected to be named later today before making landfall in Louisiana overnight.  The storm’s current path suggests it won’t make a direct hit to any of the numerous refineries in the area, but will dump heavy rains on an area that’s already been saturated this year, and is plenty weary of hurricanes from the parade of storms that hit them last year. 

Click here to download a PDF of today's TACenergy Market Talk.

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
Archive

Market Talk
Latest Posts

Market Talk
Archive

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

TACenergy
  • 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.