For A 2nd Straight Day, Reports That Saudi Arabia May Be Working A Plan To Offset Russian Oil Markets Has Caused A Wave Of Selling In Energy Markets

For a 2nd straight day, reports that Saudi Arabia may be working a plan to offset Russian oil markets has caused a wave of selling in energy markets. For a 2nd straight day that selling has proved short-lived however, as the realities of supply shortages that will only get worse with sanctions has pushed gasoline prices to new all-time highs in most US regions.  

OPEC & Friends are meeting today, and the US President is planning to fly to Saudi Arabia to try and cut a deal that would help him get reelected lower fuel prices both of which will provide plenty of headlines and likely keep the volatility elevated as the trading machines try to react to each rumor or bit of news.  

The API reported small inventory declines in oil and gasoline stocks last week, while distillates saw a small build. The DOE’s weekly report is due out at 10am central today. Watch refinery runs and exports to see how US plants are struggling to keep up with supplying markets both domestically and abroad.

Yesterday marked the official start to the 2022 Atlantic hurricane season, with another above-average year for storms forecast. Right on cue, the first storm of the year may hit Florida this weekend as remnants from a Pacific hurricane may reform. That hurricane FKA Agatha when it was setting records in the Pacific is now given an 80% chance of developing into a tropical storm named Alex in the next 2 days. While that storm is staying far away from US refineries, it did knock a major Mexican refinery offline when it made landfall.

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