Prices Extend Gains

On August 29, 2013 by TradingDesk

NYMEX gas and diesel prices extended their gains yesterday as tensions over the possibility of a Western military attack in Syria continues to build. With Russia, and now China, claiming to take up arms if the US/UK launch a retaliatory attack, WTI broke through to a high that hasn’t been seen since the Arab Spring of 2011 settling at $110.10/bbl. Brent crude also saw a steep climb Wednesday as it broke away from WTI posting a settlement price of $116.30/bbl. Ironically enough, equities showed a strong bounce mainly due to energy stocks’ gains on the back of a rise in oil prices.

Physical prices seemed tired Wednesday with only Gulf Coast conventional gas offering to move more than a couple cents in either direction by selling off by .0425; other region’s prices were mildly mixed. Flint Hills announced its plans to shut down its Pine Bend coker for maintenance in September leaving that region of Minnesota to depend on its supplemental supply from Mandan, ND and Superior, WI. Group 3 prices seemed apathetic to this news as a major disruption isn’t anticipated.

The EIA’s weekly DOE report released 9:30 yesterday seemed to have little effect on NYMEX or pipeline prices with the only notable figures being a slight build in WTI stocks of 3 million barrels and another 1.2% growth in already record high crude output. At this point it is still unclear whether some of these storm systems sweeping off the west coast of Africa will develop into something noteworthy; respective market impacts have remained silenced. With refined fuel prices continuing to pull away from support levels, it will be interesting to see where traders will draw the line and correct what some already consider to be an overbought energy complex.

CLICK HERE for a PDF of today’s charts

Market Update







Comments are closed.