Written Commentary
CRUDE OIL
February Crude Oil was higher early Monday but inside Friday’s range down action, as the market may have drawn support from yesterday’s meeting between Ukrainian President Zelenskiy and US President Trump which while cordial did not offer any breakthroughs in the ongoing efforts towards an end to the Ukraine/ Russia war. Zelenskiy said on Monday that significant progress had been made and agreed that US and Ukrainian teams would meet next week to finalize issues aimed at the war. Zelenskiy added that a meeting with Russia would be possible only after Trump and European leaders agree on a Ukraine-proposed framework. The Kremlin said on Sunday that Russian President Putin and Trump do not support a European-Ukrainian push for a temporary ceasefire ahead of a settlement. Military action in Yemen may also be heating up, after Saudi-led coalition warned that any military moves by the main southern separatist group STC in the eastern province of Hadramout that undermined de-escalation efforts would be countered to protect civilians. On the negative side for prices, Saudi Arabia is expected to lower its price for Arab Light crude for Asian buyers for a third straight month in February, which is viewed as more evidence that the increase in OPEC+ has left global supplies ample.
PRODUCTS
Gasoline and diesel prices were slightly higher early Monday after the latest round of peace talks between the US and Ukrainian Presidents concluded on Sunday.
NATURAL GAS
February Natural Gas was higher early Monday but failed to take out last week’s high. Cold weather moving into the eastern US is supporting natural gas demand early this week, but it may not last. World Weather Inc. says bitter cold air will cover most of the eastern US over the next few days, with frost and freezes likely as far south as southern Louisiana northern Florida by Wednesday morning. The medium range forecasts are much milder, with the 6-10-day calling for below normal temperatures to be limited to New England, New York, Pennsylvania, Michigan, northeastern Ohio, and the eastern seaboard as far south as Virginia. Near normal temps are expected to prevail in a band south and west of there, and above normal temps cover the western two-thirds of the nation.
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