The energy complex traded lower yesterday after news from Russia emerged claiming the country sees no need to continue cutting crude production after the OPEC agreement has expired. The deal, first reached in November of last year and again renewed in May, held each member (with a couple of exceptions) and a volunteering Russia to limited production capacity in an effort to raise prices. The deal is set to end in March 2018 and then its back to business as usual, at lease for the former Soviet Union.
Renewable Identification Number (RIN) prices continue their march upward and traded as high as 92 cents for the first time since last year. Uncertainty over if and how the EPA will hold obligated parties to retroactive RIN obligations have spurred a buying spree originating in May.
Crude oil futures failed to settle above the psychologically important $50 mark yesterday. WTI contracts exchanged hands around the $50.20s yesterday but ended the day almost $2 lower at $48.59, and producing a bearish chart formation in the process. Prompt month crude prices are currently buoyed by the contract’s 100 and 20 day moving averages, after which support can be seldom found. If selling pressure manages to force crude to settle below $48, another $3 could be knocked out of the benchmark shortly thereafter.