Futures Drift Lower in Abbreviated Juneteenth Session

Market TalkMon, Jun 19, 2023
Futures Drift Lower in Abbreviated Juneteenth Session

US stock markets and banks are closed for the Juneteenth holiday, and while NYMEX energy futures are trading in an abbreviated session, there is no settlement today, and spot markets around the country aren’t being assessed.

We’re seeing a small pullback in refined product prices after ULSD futures rallied to a 2-month high, while oil prices are seeing small gains in very quiet trading as most market participants in the US have taken the day off. Futures will halt trading at 1:30 eastern, with all trades done today included in Tuesday’s activity.

The national hurricane center is giving a 100% chance that the storm system churning across the central Atlantic will be named in the next two days and is giving 40% odds of a 2nd storm just behind the first forming over the coming week. Most early model runs keep the first storm out to sea as it turns north later this week, but there are still some forecast tracks that have it heading towards the East Coast, so we’ll need to keep an eye on it.

Money managers were cutting back their bets on higher oil and diesel prices last week, meaning many missed out on the late week rally. Gasoline saw a tick higher in net length held by large speculators, driven by a heavy round of short covering. 

Baker Hughes reported more declines in drilling activity with the oil rig count dropping by 4, and the natural gas rig count dropping by 5. 

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Futures Drift Lower in Abbreviated Juneteenth Session