It’s Green Across The Board For Energy Futures This Morning

It’s green across the board for energy futures this morning with distillate prices leading the way higher with 1.8% gains. Crude oil is trading above $92.50 so far today, looking to extend its 3-week rally as it pushes to new yearly highs.

There’s not much in the way of driving headlines this morning with major news sources pointing to the very familiar tight global supply outlook resulting from Saudi Arabian and Russian production cuts. Today that sentiment is bolstered by the report the EIA published yesterday, highlighting its expectation of declining US oil production, specifically in the Permian Basin.

Unless you live in Reykjavik there isn’t much reason to track Hurricane Nigel as it churns in the middle of the Atlantic. The fourteenth named storm of the 2023 Atlantic hurricane season is projected to stay out to sea and will likely only disrupt marine traffic for the next week or so. There are a couple disturbances brewing and one system has been given a 70% chance of cyclonic development over the next 7 days.

It’s been almost a week since the reopening of Libyan ports brought ~1 million barrels of crude oil back to the world market, but that doesn’t mean the drama is over. The country’s population is protesting, demanding accountability from the Russia-backed warlord who rules over Derna, the city that flooded and killed thousands. While there is no indication these protests have affecting oil exports, that becoming a reality isn’t farfetch’d, as we’ve seen similar situations in the past.

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