Energy Commentary

Thursday, February 14, 2019

Today’s Market News

  • Chinese Energy Imports: China’s crude oil imports are up 4.8 percent for January compared to last year at the same time. China, the world’s largest crude oil importer, received 42.6 million tonnes of oil for January – that’s approximately 10.03 million barrels per day for the month. Customs data also showed that China’s refined fuel exports rose 31.6% in January. State refineries have higher export quotas and are shipping fuel in greater volume and reaching more distant markets.
  • IPO In The Middle East: Saudi Arabia has selected several banks to arrange its first international debt sale which will help finance the acquisition of a stake in Saudi Arabian Basic Industries Corp. JPMorgan and Morgan Stanley have been appointed joint global coordinators.
  • U.S. Jobless Claims: Filings for unemployment rose las week and remain higher compared to recent trends; this could be an effect of the partial government shutdown. Jobless claims increased to 239,000 for the week ending on 2/9.
  • DOE Inventory Report: U.S. inventories rose last week to its highest levels since November 2017. The increase came despite falling net imports. Crude oil rose by 3.6 million barrels, where as some forecast an increase of 2.7 million. Falling demand was also a contributing factor as the products also saw gains.
  • Market Opinion: The energy complex is on the rise for the 3rd consecutive day as financial market draw support from investor optimism that the U.S. and China could resolve their trade dispute. The complex is looking to test retracement levels based on the recent highs & lows – look for this to be a sign of potential direction as it looks to breakout of its sideways pattern.

© 2019 CHS Inc.