Energy futures are off to a slow start Friday, after a furious reversal Thursday rally wiped out most of the losses from earlier in the week. The bounce has kept Brent and ULSD futures well above their year-old bullish trend, and have RBOB and WTI on the cusp of regaining theirs.
News that the Venezuelan oil export situation has gone from bad to worse was cited frequently to explain the price rally, while technicians may argue that the bounce had more to do with chart support holding than any change in fundamentals. If prices can manage to continue the rally today, there’s a case to be made fundamentally and technically that we could see stronger prices ahead of the OPEC meeting in 2 weeks.
A fire at the Citgo refinery in Corpus Christi helped spur the rally further, although later reports suggested that operations would not be “significantly” impacted.
Here we go again: After years of “discipline” enforced by the oil price bust, the oil-field economies are once again showing the consequences of the next boom.
Ethanol RIN values fell back to the low 20s Thursday, a day after spiking by more than a dime when senators declared that the proposed plan to update renewable policy had been rejected.