RCC Energy update Monday 10/01/2018
NYMEX @ the close.
- November WTI Crude up $2.05 @ $75.30
- RBOB up 4.18 cents.
- November ULSD up 5.94 cents.
- Gasoline up 2 cents.
- Diesel up 5.75 cents.
- LP finished up 2 cents at the Conway, Kansas hub.
This is what is pushing the trade:
The world economy is booming and we are using as much crude oil as we can produce worldwide.
Venezuelan crude output continues to drop as their economic collapse gets worse and worse. Venezuela at one time had one of the best economies in the world. They still have plenty of crude; they just can’t get it pumped out of the ground and get it exported. (Socialism is great!)
The Iranian sanctions have already taken quite a bit of crude out of the market and there are fears that the new sanctions coming in early November will cut their production even more.
If the world economic outlook continues to look positive, we could be at new price levels for a while, unless new crude production hits the market.