Energy Futures Are Caught Up In Headline Tug-O-War This Morning

Energy futures are caught up in headline tug-o-war this morning with Canadian oil production concerns and a positive US GDP report trying to push prices higher while sinking Chinese demand worries and Gaza ceasefire hopes are applying downward pressure. The latter two seem to be favored more so far this morning with WTI and Brent crude oil futures down ~45 cents per barrel, while gasoline and diesel prices are down about half a cent and two cents, respectively.
No news is good news? Chicago gasoline prices dropped nearly 30 cents yesterday, despite there not being any update on Exxon’s Joliet refinery after further damage was discovered Wednesday. Its tough to say if traders have realized the supply situation isn’t as bad as originally thought or if this historically volatile market is just being itself (aka ‘Chicago being Chicago’).
The rain isn’t letting up along the Texas Gulf Coast today and is forecasted to carry on through the weekend. While much of the greater Houston area is under flood watch, only two refineries are within the (more serious) flood warning area: Marathon’s Galveston Bay and Valero’s Texas City refineries. However, notification that more work is needed at Phillip’s 66 Borger refinery (up in the panhandle) is the only filing we’ve seen come through the TECQ, so far.
Premiums over the tariff on Colonial’s Line 1 (aka linespace value) returned to zero yesterday, and actually traded in the negatives, after its extended run of positive values atypical of this time of year. Line 1’s counterpart, Line 2, which carries distillates from Houston to Greensboro NC, has traded at a discount so far this year, due to the healthy, if not over-, supply of diesel along the eastern seaboard.
Latest Posts
Week 30 - US DOE Inventory Recap
Diesel Prices Dive On Inventory Surge As Markets Eye Sanctions And Fed Outlook
Gasoline Leads, ULSD Lags As Energy Markets Drift In Summer Holding Pattern
Energy Markets Rally On US-EU Trade Optimism; Speculator Sentiment Remains Mixed
Petroleum Futures Riding On Hope For Trade Deal
Energy Markets Mixed As Gulf Storm Looms And California Seeks Refinery Buyer
Social Media
News & Views
View All
Week 30 - US DOE Inventory Recap

Diesel Prices Dive On Inventory Surge As Markets Eye Sanctions And Fed Outlook
