RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

September Crude Oil closed down 1.14 at 48.42. This was 0.07 up from the low and 1.80 off the high.

September Heating Oil closed down 2.64 at 162.69. This was 0.13 up from the low and 5.28 off the high.

September RBOB Gasoline finished down 2.65 at 159.35, 5.59 off the high and 0.05 up from the low.

September Natural Gas finished up 0.10 at 2.98, 0.02 off the high and 0.11 up from the low.

 

While the September crude oil contract managed a seven day high early today it definitively reversed course and fell sharply back toward the last 10 day’s consolidation lows. The market was supported early in the trade by ongoing strength in international crude prices that were once again labeled the result of Asian demand. Another issue serving to lift crude oil temporarily today came from OPEC 2018 demand forecasts that were raised by 220,000 barrels from a prior forecast. The crude oil market wasn’t the only market negatively impacted by events today as the unleaded contract forged an early pulse up only to reject that move and track back toward its 10 day consolidation lows. In fact the product markets should have been supported by news that Amsterdam Rotterdam and Antwerp total product stocks declined to the lowest level since last November. The breakdown of the ARA stocks showed all major products to have declined on the week. It was painfully clear that the reversal in energy prices today was tightly correlated with the reversal and punishment in US equities. The natural gas market today was lifted again by a slight warming of temperatures, forecasts of a very active hurricane season by NOAA and by a smaller than expected injection in the weekly inventory report. The weekly natural gas storage report showed an injection of 28 bcf. Total storage stands at 3038 bcf or 2.0% above the 5 year average. Over the last four weeks natural gas storage has increased 93 bcf.

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