Energy Market Update September 6, 2017
Inc.
Energy Market Update September 6, 2017 NYMEX Prices Close October Crude Oil Crude Oil October Gasoline October Heating Oil October Natural Gas
$49.11 $1.6770 $1.7597 $3.003
Wk. Change +$0.71 +$0.0591 +$0.1345 +$0.077
MARKET COMMENTS: Nearby gasoline closed lower and the other energy markets higher on Wednesday afternoon. The nation’s largest refinery, Motive Enterprises, began restarting partial production, despite lots of flood damage; they were going to restart the large crude distillation unit. They expect the refinery to initially return to approximately 40 percent production by the end of this week. The weekly crop progress report pegged 61 percent of the U.S. corn crop in good to excellent condition, down 1 point from last week. As for the soybean crop, 61 percent was in the top category, unchanged from last week. The number of rigs drilling for oil in the U.S. was unchanged in the past week at 759, according to Baker Hughes Inc. However, because of Harvey, the firm was unable to verify changes at about 87 rigs across 47 counties in Texas. Exxon Mobil is working toward restarting its Baytown refinery, the nation’s second largest oil refinery after a shutdown due to Tropical Storm Harvey, but another of its Texas refineries remains closed.
From August 30th to September 5th, the soybean market has gains approximately 41 cents. The next upside target comes in at $9.84, which is the 50 percent retracement of the July high and mid-August low. The catalyst in this recent surge continues to be continued dry conditions in some pockets and the lack
of heat slowing development. In addition, temperatures have been unseasonably cool, which has started the chatter of a possible early frost. Hurricane Irma slammed in the Caribbean islands as it heads toward Puerto Rice. Irma is likely to turn towards Turks and Caicos Island and southeastern Bahamas, where storm surges of up to 20 feet are possible.
Shipping ports in Brownsville and Freeport Texas opened last week, while the commercial traffic hubs in Corpus Christi, Galveston, Houston, Texas City, Beaumont, Port Arthur, Lake Charles and several others were still only partially open to tankers. The partially opened ports collect a combined 2 million barrels of crude imports each day, when they're fully operational. Elsewhere, Colonial Pipeline, the largest US refined product pipeline, has resumed pumping diesel and jet fuel, the company said Monday. Colonial shut down pumping from all Texas locations on its system in the wake of Hurricane Harvey. Colonial is hoping to restart gasoline flows from Houston on Line 1 Tuesday. The Colonial system runs from Houston to Linden, New Jersey, and supplies about 60% of the incoming supply of gasoline into the Atlantic Coast. There is news this morning that China is reportedly expected to back tighter sanctions against North Korea including shutting off its oil supply following the country's latest nuclear test on Sunday. China, North Korea's sole major ally, accounts for about 90 percent of its international trade and most of its imported energy supply. Although North Korea is a small nation and uses minimal amounts of oil, this is welcome news toward descalation and stability in the region. It has now been a week since Hurricane Harvey made landfall as a Category 4 hurricane, devastating southeast Texas and parts of Lousiana, wreaking havoc in the oil industry ever since. In Houston, the waters have begun to recede but the impact is still being felt in the markets. Texas Governor Greg Abbott on Sunday increased his damage estimate to between $150 billion and $180 billion. The U.S. House of Representatives will vote Wednesday on $7.85 billion in emergency relief funds from FEMA and the Small Business Administration plans another vote later this month on a separate $6.7 billion sought by President Donald Trump.
Energy Market Update September 6, 2017 NYMEX Prices Close October Crude Oil Crude Oil October Gasoline October Heating Oil October Natural Gas
$49.11 $1.6770 $1.7597 $3.003
Wk. Change +$0.71 +$0.0591 +$0.1345 +$0.077
MARKET COMMENTS: Nearby gasoline closed lower and the other energy markets higher on Wednesday afternoon. The nation’s largest refinery, Motive Enterprises, began restarting partial production, despite lots of flood damage; they were going to restart the large crude distillation unit. They expect the refinery to initially return to approximately 40 percent production by the end of this week. The weekly crop progress report pegged 61 percent of the U.S. corn crop in good to excellent condition, down 1 point from last week. As for the soybean crop, 61 percent was in the top category, unchanged from last week. The number of rigs drilling for oil in the U.S. was unchanged in the past week at 759, according to Baker Hughes Inc. However, because of Harvey, the firm was unable to verify changes at about 87 rigs across 47 counties in Texas. Exxon Mobil is working toward restarting its Baytown refinery, the nation’s second largest oil refinery after a shutdown due to Tropical Storm Harvey, but another of its Texas refineries remains closed.
From August 30th to September 5th, the soybean market has gains approximately 41 cents. The next upside target comes in at $9.84, which is the 50 percent retracement of the July high and mid-August low. The catalyst in this recent surge continues to be continued dry conditions in some pockets and the lack
of heat slowing development. In addition, temperatures have been unseasonably cool, which has started the chatter of a possible early frost. Hurricane Irma slammed in the Caribbean islands as it heads toward Puerto Rice. Irma is likely to turn towards Turks and Caicos Island and southeastern Bahamas, where storm surges of up to 20 feet are possible.
Shipping ports in Brownsville and Freeport Texas opened last week, while the commercial traffic hubs in Corpus Christi, Galveston, Houston, Texas City, Beaumont, Port Arthur, Lake Charles and several others were still only partially open to tankers. The partially opened ports collect a combined 2 million barrels of crude imports each day, when they're fully operational. Elsewhere, Colonial Pipeline, the largest US refined product pipeline, has resumed pumping diesel and jet fuel, the company said Monday. Colonial shut down pumping from all Texas locations on its system in the wake of Hurricane Harvey. Colonial is hoping to restart gasoline flows from Houston on Line 1 Tuesday. The Colonial system runs from Houston to Linden, New Jersey, and supplies about 60% of the incoming supply of gasoline into the Atlantic Coast. There is news this morning that China is reportedly expected to back tighter sanctions against North Korea including shutting off its oil supply following the country's latest nuclear test on Sunday. China, North Korea's sole major ally, accounts for about 90 percent of its international trade and most of its imported energy supply. Although North Korea is a small nation and uses minimal amounts of oil, this is welcome news toward descalation and stability in the region. It has now been a week since Hurricane Harvey made landfall as a Category 4 hurricane, devastating southeast Texas and parts of Lousiana, wreaking havoc in the oil industry ever since. In Houston, the waters have begun to recede but the impact is still being felt in the markets. Texas Governor Greg Abbott on Sunday increased his damage estimate to between $150 billion and $180 billion. The U.S. House of Representatives will vote Wednesday on $7.85 billion in emergency relief funds from FEMA and the Small Business Administration plans another vote later this month on a separate $6.7 billion sought by President Donald Trump.
