Timely petroleum, renewable fuels, railcar, and storage intelligence from the PFL team.
Looking at the broader U.S. economy, the leading indicators continue (see PFL economic indicators below) to improve as vaccine distribution has accelerated and more re-opening has occurred or is incurring.
Oil prices edged lower today as both contracts were set to close down for the week. Oil seems to be in a wait and see mode as the market balances inventories, rising OPEC production, the global vaccine rollout, and other geopolitical issues
The number of cars in storage continued to decline, marking the 9th consecutive month of declining total storage numbers.
Oil prices were mostly flat today on the back of a large crude inventory drawdown but a big build in gasoline inventories.
“We’ve gotten to a point of somewhat equilibrium,” and the market “is in an in-between spot,” said Bill O’Grady, executive vice president at Confluence Investment Management in St. Louis. “To maintain gains, we’re going to have to see the economy pick up and energy demand continue to rise.
“The timing was not good,” said Bob Yawger, director of energy futures at Mizuho Securities. “It seemed like OPEC+ was going to roll the deal, but they didn’t and now it looks like they’re going to have to pay at least in the short term.”
Many likely did not even know this, but the City of New York was suing five major oil companies (BP plc, Chevron, Conoco Phillips, Exxon Mobil and Royal Dutch Shell) for damages due to global warming
Oil prices rallied today coming back from yesterday’s losses on preliminary news that OPEC+ would gradually lift production starting in May. According to Reuters, OPEC+
Oil prices were mixed today, trading down earlier in the session and trading up before the close. US commercial crude inventories had a draw of 876K/bbls, a little larger than the forecasted draw of -568K/bbls
This is hard but it would be a lot harder to watch your children die because they do not have clean water!’ I revisit that thought many times. This ride is a way of helping others who cannot help themselves.