RCC Market Update:

RCC ENERGY UPDATE: Wednesday 4/11/2018 4:30 PM

NYMEX:

  • Diesel up 2.79 cents
  • Gasoline up 2.67 cents
  • Crude up $1.31 cents @ $66.82/bbl

GROUP 3:

  • Diesel up 2.70 cents
  • Gasoline up 3.00 cents

CONWAY:

  • Propane up 1.5 cents

WEEKLY DOE REPORT:

Crude –

  • -0.189MB expected
  • +3.3MB actual

Diesel –

  • -0.29MB expected
  • -1.0MB actual

Gasoline –

  • -1.42MB expected
  • +0.500MB actual

Propane –

  • -0.400MB actual

MARKET UPDATE:

The bulls continued their momentum higher today as U.S crude hits its highest price since 2014 on missile concerns.  Today’s bearish inventory report was quickly side-stepped  as reports came in that Saudi Arabia stated it had intercepted missiles over Riyadh.  Geopolitical tensions spiked and prices began to rally when U.S. President Trump threatened to fire missiles at Syria as other headlines indicated that Trump warned Russia of imminent military action in Syria.

Syria is not a significant oil producer, however any sign of conflict in the region can trigger concern about crude flows across that region.  Saudi Arabia Energy Minister Khalid al-Falih said his country would not let another supply glut surface, implying that OPEC would continue to withhold supply.