Energy Futures Fluctuating As Data Reflects US Consumers Tightening Purse Strings

Energy futures are ticking modestly higher this morning after a two-day selloff that pushed refined product prices down a nickel. However, a soft retail sales figure in June seems to be limiting the rally as it offers yet another data point that U.S. consumers are tightening their purse strings.

An EIA note this morning highlighted gasoline imports on the East Coast which reached their highest levels last month since COVID started, which has helped to alleviate the impact of unplanned maintenance at the region’s largest refinery. East Coast inventories remain below their 5-year range despite that increase in imports, which will put pressure on suppliers in the region for the next 2 months until RVP specs are relaxed in the fall. 

The latest sign that the global diesel shortage is behind us: China’s diesel exports, which were a critical lifeline to Europe a year ago, have dropped to their lowest levels since May 2022 as demand for gasoline and Aviation fuels increased.

A critical piece in the diesel supply relaxation has been the rapid healing of natural gas inventories. The IEA Monday dug deeper into that crisis in its annual Global Gas security review, which urges more coordinated action between producers and consumers, which in some countries is AKA collusion.

Brewster’s Millions? Beleaguered Global Clean Energy Holdings has been offered a chance at a lifeline to salvage it's failing refinery RD conversion, but only if it can raise $10 million by July 31. 

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