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

Strong Wave Of Selling Has Wiped Out Gains

Wednesday, May 29 2019
Market Talk

So much for that bounce. A strong wave of selling has wiped out the gains of the past few trading sessions, and put most energy contracts on the cusp of fresh multi-month lows and potentially a more severe drop in the coming days.

The latest perceived escalation in the US/China trade war (rumors of rare earth metal tariffs) is getting much of the blame for the sell-off in equities and energy markets that started Tuesday afternoon and carried through the overnight session.

Both ULSD and RBOB futures are currently just a few ticks away from their May lows, and threatening another 10 cent drop in short order should this short-term chart support fail to hold.

Ethanol prices were spiking Tuesday, along with corn futures as the brutal stretch of spring weather continued across the Midwest – further delaying planting that’s already weeks behind schedule in several states. RIN values have not followed suit as the recent run-up should not impact blending operations with current ethanol inventory levels remaining ample for blending, and there’s no change in sight on the RFS.

That same rough weather continues to disrupt crude and refined product flows on a more limited scale, with a few crude pipelines around the Cushing OK hub reducing rates, which was helping WTI outpace Brent in the past few sessions, but now seems to be acting as those closures may prevent more oil from leaving that it will delay deliveries to the hub.

In addition to the problems with crude flow, Holly’s refinery in Tulsa also remains closed as a precaution as floodwaters come perilously close to the plant – and nearby terminals – while the CVR refinery in Wynnewood is reported to be restarting units that were shuttered due to storms last week.

The weekly inventory reports are delayed due to Memorial Day, the API will be out this afternoon and the EIA/DOE report will be out tomorrow at 10am central.

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.