Energies on the move

Oil (NYMEX:CLK14) prices that were falling on a weak stock market and the potential for a return of Libyan oil now will find support from the increased tensions. The gold market that does not have to balance the threat against the impact on the economy and oversupply like is reacting more dramatically to the news.

Oil also will focus on inventories. Gas (NYMEX:HPK14) inventories will continue to dutifully fall as refiners gear up to sell us those summer blends of gasoline. We are looking at oil supply to fall as the Houston shipping Channel will still take its toll on Imports. Next week we should see a big rebound on Gasoline should fall by 1.5 million barrels and distillates down 500K! Refining runs should be steady. Midwest diesel prices have been rising so the market will not like the fact that supply may fall again. Ethanol prices higher again and the focus will be on supply that rose last week.

A new survey by AAA says that Americans have grown significantly less likely to change their driving habits or lifestyle to offset gasoline prices. AAA says that only half of adults in the United States, 53%, are doing something to offset gas prices, which is about 15% less than in spring 2013.  The survey also shows that 40% believe gas is too high when prices reached $3.00 gallon; 50% believe gas is too high when the  price reaches $3.30 gallon; 65% believe gas is too high when the price reaches $3.50 gallon; and 91% believe gas is too high when the price reaches $4.00  gallon.

Natural gas is rising. Is it the weather or are people waking up to the fact that we may have a big problem when it comes to filling storage. Most producers say they are cutting back on production so something has to happen on the price side to change their minds. We may be getting ready to pop!

About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading 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. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.

 

Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The information presented by The PRICE Futures Group is from sources believed to be reliable and all information reported is subject to change without notice.


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