Gasoline And Diesel Contracts Are Exchanging Hands About .5% Lower Than Where They Settled Last Week

Refined product futures prices are drifting lower this morning as headlines focus on Hamas’s approval of the latest ceasefire deal proposed by the US. Prompt month gasoline and diesel contracts are exchanging hands about .5% lower than where they settled last week.

Anyone interested in energy price direction has the luxury of looking past domestic news stories this morning as Hurricane Beryl has made landfall with, as of now, little-to-no impact on energy infrastructure. Beryl ran aground near Bay City early this morning as a Category 1 storm, with Phillips66’s Sweeny refinery the lone production plan within the hurricane’s cone. Since the storm has threaded the needle between the two major production hubs in Corpus Christi and Houston, it seems that the threat of regional supply disruptions has passed.

The main threats still posed by this year’s first major storm will are localized power outages, heavy winds/rain, and the storm surge along portions of the TX and LA coastline. Beryl’s steady clip will help avoid severe flooding in the Houston area, and will spread its rainfall over swaths of the Midwest.

The National Hurricane Center is predicting a quiet week in the Atlantic Basin and isn’t anticipating any new storm developments over the next 7 days.

The CFTC will release it’s Commitment of Traders report later this afternoon due to last week’s July 4th holiday. Baker Hughes still published their weekly rig count however, holding the total active US oil production plants at 479 last week and reported an increase of 4 natural gas platforms, bringing the total to 101.

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