Energy Market Update September 27, 2017
Inc.
Energy Market Update September 27, 2017 NYMEX Prices Close November Crude Oil Crude Oil October Gasoline October Heating Oil October Natural Gas
$52.17 $1.6466 $1.8406 $2.974
Wk. Change +$1.76 -$0.0093 +$0.0336 -$0.12
MARKET COMMENTS: The energy markets closed mixed at mid-week, as both gasoline and heating oil close lower and crude oil higher. All in all it was a somewhat lackluster session following the release of the DOE report. The number which captured the trade’s attention was likely the LP stock number as a draw of 2.4 million barrels was reported. Crude Change DOE EST. Propane
API’s
-1.846
3Yr Avg. 471.00 443 +5.00/-3.000 Total
Gasoline
5 Yr. Avg. 410
Total 78.4 -2.4 Crude -0.761 Cushing +1.064
3Yr Avg. 219 217.3 +1.00/-3.100 Total
Change
+1.107
Distillate Fuel
5 Yr. Avg. 214
Change
-0.814
3Yr Avg. 138.0 145 -2.00/-3.695 Total
Midwest 26.5 +0.1
Gulf 42.6 -2.2
Gasoline +1.470
Distillates -4.527
5 Yr. Avg. 137
The U.S. dollar continues on its upward march, as it has been trending higher since September 22nd. The recent surge can be contributed to comments from Federal Reserve Chairwoman Janet Yellen who boosted bets on higher U.S. interest rates.
The weekly DOE report posted a build for the week, as stocks were pegged at 217.3 million barrels vs. 216.2 million last week. However, stocks levels this time last year were at 227.2 million barrels. Certainly the nearterm supply of gasoline is more than adequate to meet demand, as levels are at the higher level of the 5 year range.
The November soybean contract had been trending higher, but changed direction on Tuesday morning. It appeared to be in response to the weekly crop progress report which pegged 60 percent of the crop was in good to excellent condition vs. 59 percent last week. However, even more impressive was the rating in the state of Illinois, as the soybean crop was reported at 56 percent good to excellent, up 3 points from the previous week. Weather temperatures last week were well above normal in much of the Midwest, which allowed from rapid development. China said it will reduce oil exports to North Korea agreeing with United Nations sanctions, as North Korea pushes to build up its nuclear arsenal. Starting Jan. 1, exports of refined petroleum to North Korea will be limited to 2 million barrels a year, while exports of natural gas will be banned entirely, the Commerce Ministry said in a statement posted on its website late Friday. China will also ban textile imports from North Korea, the ministry said, cutting off another key source of revenue for Pyongyang after Beijing banned imports of North Korean coal earlier this year. Top lawyers for Oakland and San Francisco in California announced yesterday that they filed lawsuits against five of the world's biggest oil companies for damages related to climate change. The Oakland city attorney, said the legal action is meant to make the companies pay the “cost of protecting the people and the property of Oakland.” Both cities want the companies to pay for climate change adaptation programs, which would include the construction of sea walls and raising low-lying buildings. From the briefing; the defendants “promoted fossil fuels and fossil fuel products for unlimited use in massive quantities with knowledge of the hazard that such use would create,” the San Francisco suit says. The Oakland complaint makes the same argument.
President Donald Trump and Republican leaders are expected to release a tax plan this week that would slash the corporate tax rate to 20 percent from 35 percent, and cut the top individual rate to 35 percent. Nevertheless, Trump, speaking to reporters on Sunday, said he hoped the corporate rate is “going to be 15 percent.”
Energy Market Update September 27, 2017 NYMEX Prices Close November Crude Oil Crude Oil October Gasoline October Heating Oil October Natural Gas
$52.17 $1.6466 $1.8406 $2.974
Wk. Change +$1.76 -$0.0093 +$0.0336 -$0.12
MARKET COMMENTS: The energy markets closed mixed at mid-week, as both gasoline and heating oil close lower and crude oil higher. All in all it was a somewhat lackluster session following the release of the DOE report. The number which captured the trade’s attention was likely the LP stock number as a draw of 2.4 million barrels was reported. Crude Change DOE EST. Propane
API’s
-1.846
3Yr Avg. 471.00 443 +5.00/-3.000 Total
Gasoline
5 Yr. Avg. 410
Total 78.4 -2.4 Crude -0.761 Cushing +1.064
3Yr Avg. 219 217.3 +1.00/-3.100 Total
Change
+1.107
Distillate Fuel
5 Yr. Avg. 214
Change
-0.814
3Yr Avg. 138.0 145 -2.00/-3.695 Total
Midwest 26.5 +0.1
Gulf 42.6 -2.2
Gasoline +1.470
Distillates -4.527
5 Yr. Avg. 137
The U.S. dollar continues on its upward march, as it has been trending higher since September 22nd. The recent surge can be contributed to comments from Federal Reserve Chairwoman Janet Yellen who boosted bets on higher U.S. interest rates.
The weekly DOE report posted a build for the week, as stocks were pegged at 217.3 million barrels vs. 216.2 million last week. However, stocks levels this time last year were at 227.2 million barrels. Certainly the nearterm supply of gasoline is more than adequate to meet demand, as levels are at the higher level of the 5 year range.
The November soybean contract had been trending higher, but changed direction on Tuesday morning. It appeared to be in response to the weekly crop progress report which pegged 60 percent of the crop was in good to excellent condition vs. 59 percent last week. However, even more impressive was the rating in the state of Illinois, as the soybean crop was reported at 56 percent good to excellent, up 3 points from the previous week. Weather temperatures last week were well above normal in much of the Midwest, which allowed from rapid development. China said it will reduce oil exports to North Korea agreeing with United Nations sanctions, as North Korea pushes to build up its nuclear arsenal. Starting Jan. 1, exports of refined petroleum to North Korea will be limited to 2 million barrels a year, while exports of natural gas will be banned entirely, the Commerce Ministry said in a statement posted on its website late Friday. China will also ban textile imports from North Korea, the ministry said, cutting off another key source of revenue for Pyongyang after Beijing banned imports of North Korean coal earlier this year. Top lawyers for Oakland and San Francisco in California announced yesterday that they filed lawsuits against five of the world's biggest oil companies for damages related to climate change. The Oakland city attorney, said the legal action is meant to make the companies pay the “cost of protecting the people and the property of Oakland.” Both cities want the companies to pay for climate change adaptation programs, which would include the construction of sea walls and raising low-lying buildings. From the briefing; the defendants “promoted fossil fuels and fossil fuel products for unlimited use in massive quantities with knowledge of the hazard that such use would create,” the San Francisco suit says. The Oakland complaint makes the same argument.
President Donald Trump and Republican leaders are expected to release a tax plan this week that would slash the corporate tax rate to 20 percent from 35 percent, and cut the top individual rate to 35 percent. Nevertheless, Trump, speaking to reporters on Sunday, said he hoped the corporate rate is “going to be 15 percent.”
