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

Reversal Thursday Is In Effect To Start Thursday’s Trading

Thursday, Dec 9 2021
Market Talk

Reversal Thursday is in effect to start Thursday’s trading, pushing prices modestly lower after a strong 3 day rally for both energy and equity markets. While the recovery rally this week puts the threat of a bear market on hold, refined products still need to add another 5-7 cents in order to break chart resistance and put an end to the 7 week slide. 

While yesterday’s DOE report was largely shrugged off, it’s clear that near term fundamentals probably aren’t the reason for prices bouncing 25 cents this week, and may provide headwinds to future rally attempts.   The holiday demand hangover hit hard, and helped drive big increases in gasoline and diesel inventories across the country. After a 2nd straight healthy increase in inventories, US gasoline supplies look like they’ve officially made the turn higher for winter, and should continue building for the next 8-10 weeks before beginning the spring drawdown.    

Refinery runs reached a 3 month high as refiners continue to come out of a busy fall turnaround season, and deal with a rash of unplanned upsets all over the country. While production is increasing, it’s still not back to where it was before Hurricane Ida hit the Gulf Coast in August. PADD 2 runs saw the bulk of the increase, which should help to alleviate the extreme product tightness that followed most Ohio refineries being knocked offline in the past month. 

Ethanol production jumped last week as producers race to take advantage of the highest prices in a decade, before the inevitable collapse with forward values trading more than $1 below prompt barrels. RIN values stabilized yesterday after Tuesday’s whipsaw action, trading between $1.02-$1.10 for D6 ethanol RINs on the day.

As the natural gas chess match between the US & Russia ramps up, the EIA is highlighting that new export facilities along the Gulf Coast will create the world’s largest LNG export capacity by the end of next year.   Will that be enough to prevent another energy supply crunch in Europe if Russia turns off the taps in retaliation for sanctions? It’s hard to see how they could any time soon, when Russia is currently providing nearly 30% of European gas supplies, while the US accounts for only 3% and most US exports are heading to Asia.

Click here to download a PDF of today's TACenergy Market Talk, including all charts from the Weekly DOE Report.

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.