Embed Size (px)
Citation preview
This Week’s Energy Market NewsThis Week’s Energy Market NewsDOE Reports: Yesterdays inventory report showed another draw on inventories creating concerns about overall supply tightness across the United States. Inventories were already stressed coming into the beginning of September when Hurricane Ida made landfall in the Gulf of Mexico shutting down a significant portion of gulf petroleum infrastructure. Draws on gasoline stocks were 7.2M, distillates drew 3.1M, and crude 1.5M bbls. About 1.4M bpd of crude production is still offline.
Economic Giants Phone Call: Joe Biden and president Xi Jinping met on a 90-minute phone call yesterday to discuss how the two countries could work together in a more cooperative way. The call was reported to bridge the gap between the two economic powerhouses and ensure that future disagreements can be resolved without the need for conflict. The call appears to have boosted stock and commodity futures as traders are optimistic about the call.
Market Opinion: Markets are moving higher this morning as traders appear confident in a phone call between leaders of the United States and China. With the addition of tightening supply, it is appearing that wind is in the sails bringing futures higher this morning and likely through the day.
This communication may contain confidential and/or proprietary information and is intended only for the use of the individual or entity to which it is addressed. If the reader of this communication is not the intended recipient, you are hereby notified that any unauthorized dissemination, distribution, and/or use of this communication is strictly prohibited. The information contained herein is accurate to the best of our knowledge and belief. This report and any views expressed herein are provided for information purposes only and should not be construed in any way as an inducement to buy or sell. Farmward Cooperative does not ac-cept any liability for any loss or damage howsoever caused to anyone trading in reliance upon such information. Any prices indicated are subject to change with market conditions.
FARMWARD ENERGY UPDATE
Friday, September 10, 2021
Gulf of Mexico Refining Outages: With Hurricane Ida drastically impacting U.S. crude oil production and refining activities, the outages provide challenges to an already tight inventory. According to EIA forecasts, it appears that the refining outages due to unplanned issues should resolve by mid-month. The graph at left illustrates the bpd impact of unplanned outages between the end of August and mid-September.
Energy Highlights
This communication may contain confidential and/or proprietary information and is intended only for the use of the individual or entity to which it is addressed. If the reader of this communication is not the intended recipient, you are hereby notified that any unauthorized dissemination, distribution, and/or use of this communication is strictly prohibited. The information contained herein is accurate to the best of our knowledge and belief. This report and any views expressed herein are provided for information purposes only and should not be construed in any way as an inducement to buy or sell. Farmward Cooperative does not ac-cept any liability for any loss or damage howsoever caused to anyone trading in reliance upon such information. Any prices indicated are subject to change with market conditions.
FARMWARD ENERGY UPDATEPage 2Weekly Update
Energy Highlights
The EIA chart above shows U.S. gasoline inventory comparisons over the last five years. Much of the drawdown in gasoline inventories for 2021 can be attributed to cold weather refinery shut downs in Texas during a massive February cold snap. Since that point stocks have struggled to gain momentum and pricing has reacted accordingly. Stockpiles have remained below last year’s numbers, five-year average, and five-year range for the last five weeks.
U.S. gasoline stocks had a significant drop in stocks this past week, as a 7.215 million barrel draw was reported. Stocks continue to run below the 5 year average. The draw is a solid sign demand is strong, as more and more consumers are back traveling. However, demand typically slows down after the labor day holiday, as kids are back in school and vacations are not as frequent.
Heating Oil Futures: The recent increases in futures values puts the market back on track toward hitting the recent 90-day high for the futures. After a brief sell off down to $1.8965 at the end of August, the market has gained back almost 25 cents in the last few weeks.
US Retail Prices – Gasoline: The summer driving season came to an end with a bang, as U.S. retail prices were the highest they have been for Labor Day weekend since 2014. According to the EIA, average prices for gasoline were $3.14/gal. The price was almost a dollar higher than the year prior, where lack of demand stemming from COVID-19 brought petroleum prices to record lows. The chart at left illustrates the average price based on region. The west coast market was averaging almost $4.00/gal.
This communication may contain confidential and/or proprietary information and is intended only for the use of the individual or entity to which it is addressed. If the reader of this communication is not the intended recipient, you are hereby notified that any unauthorized dissemination, distribution, and/or use of this communication is strictly prohibited. The information contained herein is accurate to the best of our knowledge and belief. This report and any views expressed herein are provided for information purposes only and should not be construed in any way as an inducement to buy or sell. Farmward Cooperative does not accept any liability for any loss or damage howsoever caused to anyone trading in reliance upon such information. Any prices indicated are subject to change with market conditions.
Propane News -
U.S. propane and propylene stocks climbed 817,000 bbl to 70.099 million bbl in the week ending Sept. 3, the U.S. EnergyInformation Administration (EIA) said Thursday. The EIA’s report shows year on year stocks down 28%.The weekly inventory increase was slightly higher than the expected average build of 727,000 bbl for last week.Exports grew 330,000 b/d to 1.412 million b/d. The four-week average stands at 1.159 million b/d. Year on year, exports are up 75.6%.Propane and propylene product supplied, an indicator of implied demand, fell 455,000 b/d to 861,000 b/d. Year on year, it is down 21.4%.Refiner and blender net production dipped 99,000 b/d to 2.294 million b/d. The four-week average stands at 2.352 million b/d.Year on year, production is up 8%. Imports increased 14,000 b/d to 95,000 b/d last week. Year on year, they are up 14.5%.
Combined propane and propylene stocks in Gulf Coast (PADD 3) fell 158,000 bbl to 33.471 million bbl. Year on year, they are down 41.3%.Midwest (PADD 2) stocks rose 494,000 bbl to 23.149 million bbl. Year on year, they are down 12.5%.East Coast (PADD 1) stocks rose 229,000 bbl to 8.6 million bbl. Year on year, they are down 1.6%.PADDs 4 and 5 inventories rose 252,000 bbl to 4.879 million bbl. Year on year, they are down 6.5%.
FARMWARD ENERGY UPDATEPage 3Weekly Update
This communication may contain confidential and/or proprietary information and is intended only for the use of the individual or entity to which it is addressed. If the reader of this communication is not the intended recipient, you are hereby notified that any unauthorized dissemination, distribution, and/or use of this communication is strictly prohibited. The information contained herein is accurate to the best of our knowledge and belief. This report and any views expressed herein are provided for information purposes only and should not be construed in any way as an inducement to buy or sell. Farmward Cooperative does not accept any liability for any loss or damage howsoever caused to anyone trading in reliance upon such information. Any prices indicated are subject to change with market conditions.
FARMWARD ENERGY UPDATEPage 4Weekly Update
For any inquiries, please contact: Morgan Office...............................507.249.3196
Pat MachtEnergy Manager
Office: 507.249.3196Cell: 507.430.2233
Curty MeyersEnergy Sales Specialist
Office: 320.826.2214Cell: 507.430.1884
Travis WendtEnergy Sales Specialist
Office: 507.723.7350Cell: 507.227.7119
Brooks TorkeEnergy Sales Specialist
Office: 507.485.3153Cell: 507.616.6958
As of 8/17/21 Price 1000 Gal 1500 Gal 2000 GalRuby FM $2.649 $2.639 $2.629 $2.619#2 Clear $3.099 $3.089 $3.079 $3.069
PricePropane Ag/Comm $1.55Propane Home Heat $1.60
FARMWARD ENERGY UPDATEPage 6Weekly Update
