Oil prices are lower on turmoil, whether it be from mother nature or politics. Fears of more Covid-19 shutdowns weigh on prices and fears that increasing political divides after the death of Supreme Court Justice Ruth Bader Ginsburg reduces the odds that the U.S. will get much-needed coronavirus relief.

The oil market is saying sayonara to summer, jumping into shoulder season as refiners remain shut down. It didn’t help oil when the Saudis cut the selling price for some grades of crude oil, suggesting weak demand and a sense that it isn't going to get better until the snow starts to fly.

The breakdown in the broken-down oil market on Wednesday was a precursor to the breakdown in global stock markets. As the techs dropped, energy stocks tried to creep back. 

Hurricane Laura did its last blast of damage to oil and product prices as a drop in demand overshadowed massive reductions in supply, causing the trade to go into shoulder season mode and take cover ahead of the Labor Day holiday weekend.

Oil prices rallied after touching multi-decade lows in April, but they have been stuck in a narrow trade band for 2 months now as the pent-up U.S. demand rebound in June has fizzled out with flattening fuel consumption that continues to struggle to reach pre-pandemic levels.

A market profile poor high indicates that a market has been forcibly prevented from moving higher and that the auctioning process hasn’t been completed. This has recently happened in WTI Crude Oil futures, specifically within the price range of $43.22-$43.28.

China not only imported a record amount of oil last month, economic data coming out of China suggests that demand should continue.

A bet by Warren Buffet on Japan trading companies seems to be a big bet on commodities, meaning the Wizard of Wall Street sees value in this space.

The petroleum complex did a post-hurricane drop as some of the worst-case scenarios predicted from Hurricane Laura did not play out like past hurricanes.

Laura is the strongest hurricane in 168 years and already there are signs that the U.S. energy Industry is making strides to get back to normal.