• Supply
  • Social Media
VisitTAC - The Arnold Companies
Customer LOGIN
TACenergy
Customer
LOGIN

Markets Caught In Another “Risk Off” Wave

Monday, Jun 15 2020
Market Talk

Energy and equity markets are caught in another “risk off” wave to start the week, as concerns over a second wave of coronavirus continue to dominate business headlines. The early sell-off is threatening a break of the weekly bullish trend line, which threatens a move back into the $20’s for WTI and Brent if that chart support can’t hold, which would drag refined products back below the one dollar mark.

The IEA published a study analyzing the change in energy demand in a work-from-home environment, noting the sharp drop in emissions from vehicles, offset to some degree by an increase in residential electricity and natural gas demand. It’s not just energy demand that is shifting in the work-from-home era, sugar demand is expected to drop for the first time in over 40 years as a result.

Baker Hughes reported seven more oil rigs taken offline last week, bringing the total U.S. oil and gas rig count to yet another record low. If you’re looking for the bright side in yet another rig reduction, this was the smallest weekly decrease in the 13 reports since the COVID-19 shutdown began. It’s hard to say which is more notable, the fact that drilling rigs have dropped by 71 percent in less than three months, or that there are still 199 rigs actively drilling new oil wells in this environment.

Money managers continue to make minimal changes in their petroleum contract holdings, according to the latest report from the CFTC. The large speculative category of trader saw modest increases in WTI and Brent length last week, while refined products saw small decreases.

BP issued a press release this morning that revised its long-term price assumptions for oil due to expected economic damage from COVID-19, and said it was planning on taking non-cash write downs of around $15 billion (give or take a couple billion) as a result. This type of write down it likely to become a theme when Q2 earnings reports are released as prices only started to drop in the last few weeks of Q1.

Click here to download a PDF of today's TACenergy Market Talk.

News & ViewsMarket Talk

News & Views
Latest Posts

KTBS 3 Spotlight on TACenergy Leadership COO Fred Sloan - Sharing Thoughts on Changes in the Gas Market
Go Rentals Opens 10 New Locations with Partner, TAC Air
Tac Air's new facility features B17-G model airplane, Military Situation Room
TAC Air B-17G Model Brings Nostalgia and Tears

News & Views
Archive

Market Talk
Latest Posts

Market Talk
Archive

TACenergy logo
Sales:  800-375-FUELSupply & Logistics:  800-808-6500

Get in Touch

Sign up to receive market talk updates in your inbox each day.
Establish a credit account.
Apply For Credit
Need to make a fuel order today?

Follow us

TACenergy
  • Supply
  • News & Views
  • Market Talk Updates
  • Social Media
  • Contact a Representative
  • Customer Login
  • Apply For Credit
Find Your Next Great Role With TACenergy.
Explore Careers
  • Privacy Policy
  • Terms of Use
  • Employee Login
  • Sitemap
TACenergy, LLC © 2022. All Rights Reserved.