- CPI, China, EIA - Blue Line Morning Express
Out to brokerage clients every single morning with actionable trading ideas.
- The Barrels Come Home to Roost. The Energy Report 12/12/18
The chickens have come home to roost in the oil market. Or maybe its barrels, whatever. All this selling in recent weeks on talk of [...]
- Outside Forces. The Energy Report 12/10/18
OPEC resisted outside forces and pressure from President Donald Trump to not cut production only to have oil falter from outside market forces. Originally...
- What Goes Up...
Yesterday the markets dropped a bit after Monday's runup. Will the markets reverse course today and continue Upward movement? Read on to learn more......
- Gasoline set for a bottom?
It's rare to get down to a 4th PriceCount, which is what gasoline has done. My guess is that it will take very little to get gasoline to start a move,...
- Midday Market Minute
Making sense of the volatility. ES, Crude, Gold and more
Futures Market Commentary
Jan Nymex natural gas (NGF19) this morning is down -0.199 (-4.52%). Nat-gas prices tumbled to a 2-week low this morning as the outlook for above-normal temperatures in the U.S. has prompted fund selling of nat-gas futures. NOAA is forecasting warmer-than-normal temperatures across most of the U.S. from Dec 17-21 with the Midwest seeing extreme seasonal warmth Dec 16-20. On the positive side is a weaker dollar and expectations for Thursday's weekly EIA nat-gas inventories to fall -88 bcf, more than the 5-year average for this time of year of -79 bcf. Also, U.S. nat-gas production has dropped off as today's data showed that U.S. natural gas production in the lower 48 states fell for a third day to 78.902 million cfd, a 4-3/4 month low. U.S. nat-gas inventories remain tight at 2.991 bcf as of Nov 30, -19.5% below the 5-year average and -19.1% y/y and the lowest seasonally since 2002.
Jan WTI crude oil (CLF19) this morning is up by +$0.86 per barrel (+1.67%) and Feb Brent crude (CBG19) is up +$0.82 (+1.36%). Jan RBOB gasoline (RBF19) is up by +1.96 cents per gallon (+1.36%). Crude prices are higher this morning on signs of smaller supplies after Tuesday afternoon's API data showed U.S. crude stockpiles fell -10.2 million bbl last week. A weaker dollar is another positive for the energy complex this morning. OPEC compliance with crude production cuts was little changed last month as OPEC Nov compliance with crude production cuts fell to 111% from 113% in October, meaning OPEC cuts were 11% more than the targeted production cut. A rally in global equity markets on improved US/Chinese trade sentiment is another supportive factor for crude prices this morning. Today's weekly EIA crude inventory report is expected to show that U.S. crude oil inventories fell -3.5 million bbl.