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

Petroleum Complex Selling Off

Monday, Feb 4 2019
Market Talk

Most of the petroleum complex is selling off Monday morning, reversing course after a strong Friday finish and overnight gains had pushed prices to their highs of the year so far and set the stage for a big move higher. It’s not clear what’s driving the reversal sell-off this morning, but it could simply be that fears over sanctions and a rash of refinery problems had pushed prices too high too fast.

After a week filled with numerous refinery issues – most due to the extreme cold temperatures – a pair of refinery fires Sunday (one in Toledo OH and the other in Delaware City DE, both happen to be PBF plants) gave gasoline prices more reason to continue their run.

March RBOB futures spiked nearly a nickel when trading started Sunday night, marking an 11 cent increase since Friday morning, but have since given back all of their overnight gains. It’s always a challenge determining what type of a market impact unplanned refinery issues will have, but based on the price reaction so far, it doesn’t seem like either of the weekend fires will create long-term disruptions.

There is still a great deal of consternation about Citgo’s outlook in the short & long term. The Treasury issued notes on Friday clarifying the sanction rules for US-based bondholders of Citgo’s debt, and for purchasers of PDVSA crude (of which Citgo is one of the largest). Long story short, US companies can continue buying Venezuelan crude for 3 more months, as long as the funds go into blocked accounts.

Citgo meanwhile is denying claims that it’s considering bankruptcy in order to continue operating in the US, and by some accounts may soon find itself flush with cash since the funds it generates in the US are not able to be repatriated to Venezuela.

The CFTC announced last week that it would publish 2 Commitments of Traders reports each week to catch up from the time missed during the government shutdown. So, last Friday’s COT report showed data from the week of Christmas and we won’t get current reports for another few weeks. The ICE COT reports continue to be published however, and speculators continue to return to the oil market with net length held by money managers increasing for a 4th straight week.

Baker Hughes reported a decline of 15 oil rigs last week, bringing the US total rig count to its lowest level since last May. Texas and Oklahoma accounted for about half of the decline nationwide.

CLICK HERE for a PDF of today's charts

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.