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Will Inventory Data Impact Prices?


The big question for the energy trade today is whether-or-not this week’s inventory data represents a long-term impact on prices, or if the developments this week were simply one-off reactions to the severe US freeze. On one hand, the gasoline and diesel markets were justified in their gains because of lower production levels but the sharp gains in crude oil prices yesterday were very surprising in the face of unbelievable increases in EIA crude oil stocks.

As indicated in the crude oil coverage today, it is possible that the gasoline market could take over the role of leadership market within the energy complex.


In our opinion, the temperature outlook for the US became a little more supportive overnight, with nearly half of the US expecting below normal temperatures. However, the trade is looking through the tail end of winter with expectations for heating degree days to continue to run below normal.

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