Energy Futures Seeing Moderate Recovery After Post-Holiday Losses

Energy futures are staging a moderate recovery this morning after Monday’s losses wiped out last week’s pre-holiday gains. The big 3 U.S. petroleum benchmarks are trading around 1.5% higher to start the day in sympathy with equities, which has been the case, by and large, since the White House made its tariff announcements on April 2nd.

The U.S. has now imposed sweeping tariffs on solar panel exports from Southeast Asian countries after the US Department of Commerce concluded its multiyear antidumping investigation. The Department found that the People’s Republic of China had been providing subsidies to companies in Cambodia, Malaysia, Thailand, and Vietnam in order to produce and sell solar cells in the US.. at artificially low prices. While this ruling may not have a direct effect on refined product prices outright, it will push some consumers/utilities back to traditional sources for power generation, which is supported by the current administration despite potential legal issues.

Phillips 66 is calling foul on activist investor Elliott Investment Management’s efforts to break up the company, citing the conflict of interest concerns. Amber Energy, backed by Elliott, is currently attempting to acquire P66 competitor, Citgo, again, after creditors forced a redo over unfavorable payment terms.

Speaking of, Energy News Today reported that the P66 refinery in Bayway has returned to planned run rates after completing a major turnaround. Keep an eye out for next week’s PADD 1 refinery runs chart to see if the plant’s return to service will be enough to bring regional production back near 4-year highs.