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

Recovery Rally Taking Step Backward

Tuesday, Jan 22 2019
Market Talk

The recovery rally in energy & equity markets is taking a step backwards to start Tuesday’s trading session as recession fears seem to have crept back into the headlines after several weeks of optimism. As the charts below show, the two asset classes continue to trade in close formation on a daily, and often hourly basis.

Negative economic data seems to be the major theme driving the headlines today. The IMF sent a warning shot Monday when it lowered its global growth forecasts for 2019, and noted additional downside risks to the global economy. China reported its economy is still growing, but its rate of growth (estimated at 6.6% in 2018) was the slowest in nearly 3 decades.

More to the story? While we can’t see the Commitments of Trader data from the CFTC during the government shutdown, there are reports that the liquidation by money managers we saw during the 4th quarter price melt-down may be have been driven by poor-performing energy hedge funds closing their doors, rather than just getting out of the way. That begs the question of whether or not funds will play a lesser role in the market going forward, or if this is just the latest swing of the pendulum in a wildly cyclical marketplace.

The EIA continues to flex its federal funding this week, publishing a new report on its detailed tracking of power plant fuel inventories, including their petroleum backup supplies. Speaking of which, despite a surge in power demand from the winter storm and subsequent cold snap that’s gripped much of the country, distillate prices have not seen any notable spike, and natural gas prices are tumbling this morning, suggesting limited impact on supplies compared to previous years.

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

Market Talk
Latest Posts

Market Talk

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

  • 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.