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Bullish Resiliency Cont in Petroleum


Bullish resiliency continues in the petroleum markets with the fear of contagion/expansion of hostility in the Middle East the primary driving force. In fact, Israel looks poised to launch a ground war in Gaza with military experts predicting an Israeli version of “shock and awe” which is an attempt to use overwhelming strength. Obviously, many bearish headline developments typically capable of impacting crude oil prices will be discounted or ignored with a highly charged political divide raising temperatures of Israelis Israeli supporters, Palestinians, and a portion of the Arab world. Therefore, news overnight that Venezuela is working to reestablish international relationships with past customers and inflows of restricted energy production technology to Venezuela resuming, offer bearish supply storylines but they are unlikely to have any influence.

cooking oil


As we indicated in coverage yesterday, the risk of large weekly injections to EIA natural gas storage ahead are rising and with this week’s injection at the top end of estimates, we expect a triple digit injection next week. While not an impact on prices today, Finland indicates they now have concrete evidence of sabotage of their pipeline and while they do not have physical proof Russia carried out the attack, they say there is significant circumstantial evidence they were involved. Mild temps prevail, but patterns are likely to shift next week. The path of least resistance remains down as this week’s injection was at the upper end of estimates, the surplus to 5-year average storage levels increased, there were reports of record US production from earlier in the week, and the market has seen fresh technical damage this morning.


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