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Texas Refinery Shutdown Profit Taking

CRUDE OIL

Crude oil prices were on the defensive and dropped more than $3.50 from Thursday’s high before finding their footing overnight. There has been talk that it may take some time for Texas refineries to resume full operations after this week’s severe storms. While many oil wells have been shut down as well, crude stocks are expected to rise.

Both RBOB and ULSD are under pressure this morning, they are close to their recent highs. Texas refinery activity has dropped sharply this week, and it will take some time for them to fully recover, which has provided some support to product prices.

 

NATURAL GAS

Natural gas prices have shaken off early pressure and have climbed back towards unchanged levels overnight. There are signs of returning production in Oklahoma and Texas, and the US temperature forecast shows much warmer temperatures for three-fourths of the US out to March 3.

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

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