Energy Market Updates
Posts by:
Mark Pszeniczny
Market Tumbling Update
The International Energy Agency said it will release 60 million barrels of oil from emergency stocks in the next 30 days to alleviate supply problems caused by the...
Greece Debt Crisis pushes Nymex Lower
Positive Sales and Demand Data boosts RBOB
Futures Continue to Rebound on Two Week Rally
If you were to ask me two weeks ago if I thought the HEAT pit would rebound 30 cents after falling 45, I would say its about as likely as a tornado in Massachusetts.... And so here we are! With what has been an almost two week rally, todays moves looked to be a reaction to the indecisiveness of OPEC. For that last few years, OPEC has lost much of their mojo and most discounted their pumping policies and mandates as rhetoric. As with any slow news day, people needed something to jump onto and the report that OPEC was doing nothing had bulls run the table. That coupled with the DOE report of Crude having a 4.8mbl draw simple let the gates open for a decisively higher session. Jobless claims increase slightly last week still signaling a troubled economy. Even the Natgas report that showed an unexpected injection of 80bcf could not derail the upside. While many see the last several sessions as technical buy backs, it is difficult to maintain the notion that better days are to come as we pop 3 or 4 cents higher everyday. At the close, Crude maintained above $100 and settled up $1.19 to $101.93, HEAT rose .0441 to $3.1378 and RBOB jumped .0611 to $3.0398.
Dennis K Burke at NEFI Boston June 7th & 8th
Dennis K Burke is excited to be an exhibitor at this years NEFI Expo and Energy Summit June 7th and 8th at Boston’s Hynes Convention Center.
Markets Jump Higher After Long Weekend
What a difference a week makes! less than a week ago were were talking about HEAT testing some key support levels, but after today, those might be to far to see in the rear view mirror. The pits have jumped some 20 cents in the last five sessions. While yesterdays electronic trading seemed to bear some positive tones as most of the session was down almost 2 cents, waking up this morning saw the market up over 4 and Crude up over a dollar. The second round of bailout money for Greece appears to be in the works as Germany is conceding. Over the weekend, a NATO commander stated his forces were making significant strides against the Gaddafi regime and guaranteed his removal in the next few months. On the homefront, a pipeline leak in the Kansas City area that originates in Canada forced that line down for the second time in a week. The key detail in that report is that the pipeline ends up in Cushing, Oklahoma, a key yardstick for National Inventory numbers. The fear pushed values higher and stayed there the remainder of the day with Crude now healthily over $100 to close up $2.11 to $102.70, front month RBOB added .0584 to $3.1504, while JUL RBOB was up only .0190. HEAT finished higher by .0658 to $3.0563, JUL HEAT added .0516 to $3.0530. HEAT is currently at the top end of the recent range of 2.80 to 3.05, one would expect to see some profit taking over the next couple of days.