Energy Market Recap – 7/28/2017Posted 07/28/2017 3:35PM CT |
September Crude Oil closed up 0.71 at 49.75. This was 0.89 up from the low and 0.06 off the high.
September Heating Oil closed up 3.39 at 164.10. This was 3.86 up from the low and 0.38 off the high.
September RBOB Gasoline finished up 2.68 at 164.65, 0.32 off the high and 3.58 up from the low.
September Natural Gas finished down 0.03 at 2.94, 0.04 off the high and 0.01 up from the low.
The crude oil made yet another impressive range up move which brought the $50 psychological level into the front windshield of the market. Once again the gains in WTI were mirrored in other crude grades around the world. Persistent weakness in the dollar apparently offsets the downshifting global economic psychology in the wake of the US healthcare reform debacle. It would appear as if the gasoline market has regained its footing and is now outperforming the crude oil market. Another issue that came in to the markets thinking this week is forecast for Chinese diesel demand to rise along with its economic recovery. While a significant jump in Exxon profits might cause some to fret over increased exploration ahead the company also reported higher sales of gasoline and kerosene in the quarter and that contributes to the positive demand argument. Surprisingly the crude oil market did not show a negative reaction to news that US drillers added 2 rigs this week but that news was offset by the fact that the drillers only added 10 for the month as that in turn was the lowest monthly addition in 14 months. Unfortunately for natural gas bulls US horizontal drillers added 7 rigs on the week and prices seemed to sag off that news.