Good evening blog readers. Thursday is here and that means it is time for the much anticipated Energy Report to begin. I bring news of energy gains. Crude oil settled higher at close today, leaning closer to the $80 mark at $79.06. The large bounce in today's market was driven by what appeared to be technical buying. This week has provided a large jump in the diesel market, with prices up almost .15 cents on the cash market, expect the pumps to jump. The majority of the gains were futures driven, but basis has seen a .06 cent jump over the week in the Chicago market . The DOE report was interpreted as bullish, even with builds in crude oil of 3.085 million bpd and builds in gas of 1.6 million bpd. But it was draws in diesel of 2.9 million bpd which seemed to be enough to prop the market up for the day. Just in itself the report is kind of neutral, but in context of early week expectation everything but crude is an improvement in demand numbers. The numbers are explained under import reports showing larger than expected crude imports and much lower than anticipated heating oil imports. Demand is still down, with diesel leading the way at 7.9% weaker than this time last year, and gas lagging at about 1.3%. Never less products saw gains every day this week including today's .06 cents on gas, .045 cents on diesel, and $1.73 on crude. Most gains are being attributed to the weak early day dollar, leading buyers back into energy. Looking forward it doesn't seem like a break in gains is in our future, the market really seems focused on getting crude to the $80 mark, if it holds look to spend more on diesel this spring. But... a big but is if the bulls are unable to push it above $80 look for $2.00 plus retracement to provide a temporary break on diesel and gas gains.
Good evening all.
thanks for reading
Zach Winter
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