Oil Futures Are Giving Back Yesterday’s Gains This Morning

Oil futures are giving back yesterday’s gains this morning on news that the US has eased crushing oil export sanctions that have been levied on Venezuela since 2019. The release of the OPEC member’s oil to the global market comes in exchange for cooperation between the current administration in Caracas and its top opposition party in order to establish more equitable elections. WTI and Brent futures are down 1% to start the day.

Yesterday’s DOE report showed an across-the-board decline in the ‘big 3’ energy products yesterday with crude oil inventories down 4.5 million barrels, diesel down 3.2 million barrels, and gasoline down 2.4 million barrels. Crude oil exports and a bump in refinery runs overpowered US oil production, which is at record highs.

Diesel prices in the Midwest skyrocketed yesterday, trading as high as 75 cents over the NYMEX. The Magellan Central pipeline system, servicing the breadbasket of the US from Tulsa OK up to Grand Forks ND, is struggling to keep up with ULSD demand created by the fall harvest. The turnaround the Phillips 66 Ponca City refinery certainly isn’t helping ease the price spike.

Massive scientific breakthrough: the EPA published research findings yesterday determining that emission from leaded aviation fuel is harmful to people and the environment. It is suspected that inhalation of leaded fuel emissions is the chief reason for this article being labeled as news, considering lead’s effects on the human brain.

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