Written Commentary
CRUDE OIL
April Crude oil was slightly higher early Friday after falling to its lowest level in a week earlier in the session. The market sold off sharply on Thursday after President Trump said US could make a deal with Iran over the next month, easing concerns about a potential attack that had developed earlier in the week. But until a deal is reached, the threat of attack (and a disruption to shipping out of the Persian Gulf) remains. The market had also fallen after the IEA issued a report that said global oil demand growth this year will be weaker than previously expected, with overall supply set to exceed demand. The Kremlin said on Friday that the next round of peace talks on Ukraine will take place next week. The US has issued a general license to India’s Reliance Industries Ltd that will allow the refiner to buy Venezuelan oil directly without violating sanctions
Oil pump and oil refining factory at sunset. Energy industrial concept. Selective focus. Creative artwork decoration.
PRODUCTS
Like crude oil, product prices bounced off overnight lows as yesterday’s selloff from President’s Trump’s somewhat conciliatory tone toward Iran may have gotten overdone
NATURAL GAS
April Natural Gas was lower early Friday, back in the vicinity of this Wednesdays’ low. The 6-10 and 8-14 day forecast maps show above normal temperatures dominating the central and eastern US, but colder than normal is dominant west of the Rocky Mountains, especially the 6-10-day. On the whole, the forecast looks a little cooler than they were Thursday morning. The weekly EIA gas storage report on Thursday was a bit bearish against expectations, but it was still a large draw.
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