78 members / 574 guests (24 hours)

An Interesting IDB update! And how IDB got even faster.  IDB is fast, reliable, and FREE to use. Just join and start posting!

The Energy Report

The Energy Report

Phil Flynn
http://www.pricegroup.com/
pflynn@pricegroup.com


The Energy Report 02/14/18

Shoulder Season Blues

Oil prices are under pressure after the American Petroleum Institute (API) reported a 3.947-million-barrel increase in crude supply, not unexpected because it is after all shoulder season. Yet, a 2.319 million barrel drop in Cushing Oklahoma oil supply should give the bears some pause. The continued draws in the NYMEX delivery point at some point will lend support as this delivery point supply is drying up.

We also saw gasoline supply rise by 4.364 million barrels, which may have been impacted by weaker demand caused by winter weather. We should start seeing draws soon as refiners and oil companies must draw down the winter blend of gasoline. Distillate inventories also increased by 1.1 million barrels adding to the negative mood this morning.

Yet, it does look like the outside markets are looking more stable and that should lead to more market optimism. The Dollar is weaker against the Yen and that should offer crude some backdoor support.

Really with the global oil demand rising, the selloff in oil should be temporary. We know shale is on the rise, but it is just replacing lost production from other areas, like Venezuela for example.

Venezuela oil production last moth fell to its lowest level in 30 years, according to OPEC. In Its monthly published report, it reported that Venezuela produced 1.6 million barrels of oil per day last month. Production in January was down 20% from a year ago.

OPEC says that world oil demand for 2018 will grow by 1.59m bbl/day to 98.6m bbl/day, on the back of a steady rise in global economic activities and increased vehicle sales in the US, China and India. This comes as global oil inventories continue to fall. In December, OPEC global stockpiles were about 109 million barrels above the five-year average, which is OPEC's target. "In line with the existing overhang, the market is only expected to return to balance towards the end of this year."

Make sure you are getting the best in business! Watch the Fox Business Network! Call to get my latest trade levels at 888-264-5665 or email me at pflynn@pricegrouop.com.

There is a substantial risk of loss in trading futures and options.

Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

Phil is one of the world's leading energy market analysts, providing individual investors, professional traders and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline and energy markets. Phil's market commentary, fundamental and technical analysis, and long-term forecasts are sought by industry executives, investors and media worldwide.

PLACING CONTINGENT ORDERS SUCH AS "STOP LOSS" OR "STOP LIMIT" ORDERS WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS. SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS.

Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Alaron Trading Corp. its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

Contact Phil at 1-888-264-5665 or pflynn@pricegroup.com.