Written Commentary
CRUDE OIL
April Crude Oil was higher early Wednesday and was back in the vicinity of the January high that came in the wake of the extreme cold event. Geopolitical concerns remain elevated, with President Trump saying on Tuesday that he was considering sending a second aircraft carrier to the Middle East. Tensions remain high despite Iran representatives putting a positive spin on the talks with US in Oman last Friday. The closure of El Paso International Airport for 10 days may also be supporting prices this morning.
PRODUCTS
March RBOB pushed through Monday’s high early Wednesday to reach its highest level since June. March ULSD was higher as well, approaching last week’s high. LSEG and Reuters data has indicated that ULSD loadings from the Russian port of Primorsk may fall about 17% month-on-month in February to 1.7 million metric tons.
NATURAL GAS
March Natural Gas was lower early Wednesday, continuing its selloff off the peak in late January off the extreme cold event. Warmer weather has arrived in the Midwest, and it is coming to the northeast. The 6-10 and 8-14 day forecasts have above normal temperatures covering the lower 48 states from the Rocky Mountains to the east coast. As this extended all the way out to February 24, the window for the heating demand season is closing.
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