Energy prices are trying to bounce this morning after 2 straight days of heavy selling leave the complex on the verge of a 2nd straight weekly decline. Financial influences from equity and currency markets seem to have kept their hold on energy trading this week, and with another FED meeting coming in 12 days it seems that pattern may hold for now.
It’s been a tough week for the Colonial pipeline with Line 3 shutting Wednesday due to a potential spill, and then its main gasoline line, line #1, shutting Thursday to investigate an integrity issue. The good news is both lines have resumed normal operations this morning with no impacts to regional supplies reported.
If North Korea and the US can agree to meet after decades of avoiding one another, I guess it only makes sense that Big Oil and Big Ag do the same. The White House has scheduled another meeting Monday to try and get the two group to work on a reform plan for the RFS, which continues to put pressure on RIN values. There are competing proposals being floated around the halls of congress this week, with one of the bills called “The Growing Renewable Energy Through Existing and New Environmentally Responsible Fuels Act” or TGRETENERFA for short. Has a nice ring to it.
The February jobs report was a strong one, with 313,000 jobs added for the month, while both December and January estimates for job growth were revised higher. The initial reaction was positive for equity and energy markets, but could have the opposite effect if the news is seen as “too good” and encourages the FED to make more aggressive moves to keep the economy from overheating.