Energy futures are bouncing back this morning after a strong sell-off to begin July knocked a nickel off of refined product prices and nearly $2 off of Brent. The early strength is pegged to Libya declaring Force Majeure at two of its ports, as that country continues to struggle to figure out who’s in charge, while the market is still trying to decide what else the Saudis can or will do to prevent oil prices from pushing north of $80 again.
WTI has continued to outpace the rest of the complex at the front of the curve, as expectations for further Cushing OK inventory declines mount due to a rapid reduction in Canadian imports. Further ahead on the futures curves the contracts are moving more in unison, as traders bet that the North American disruptions will be relatively short lived.
An EIA report released this morning shows that while Petroleum & Natural gas remain the dominant sources of US energy supply, the total share of fossil fuels fell to its lowest percentage in more than a century. As electric vehicles become more popular, Bloomberg notes that Big Oil is facing off with utility companies to grab market share.
While July 4th is a US Holiday and spot markets will not be assessed, CME/NYMEX futures will still be open for an abbreviated session that will fall into Thursday’s official trading records. The DOE’s weekly Petroleum status report will be released on Thursday.