Weekly and monthly energy updates provided by Mike Barfuss, VP of Energy.

WEEKLY ENERGY UPDATE
June 17, 2013
 
Recap:  Energy prices were lower the first part of the week but finished higher the last two days.  The energy markets are trying to break out higher from the range they have been confined to for the last few months.  The energy markets ebb and flow with the equities and currency market movements.  However the adequate global crude oil supplies and U S exports of refined product are keeping any supply and demand concerns in check.  All focus will be on the Feds quarterly meeting to be held next week.  Any formal hint of cutting back on stimulus funds would be conducive to the dollar moving higher and energy markets lower.  However, a price pull back may not happen if the market sentiment is the actions are already factored in.  Next week should be quite volatile.

Forecast:  Even though markets ended higher for the week I am still staying with range bound at the upper level of the current trading range.  I also think the Feds will hint of reducing stimulus funds this fall and that will spook the market downward at least in the short term.

Customers needing product should re-fill inventory at these lower basis levels.


WEEKLY ENERGY UPDATE
June 10, 2013

Recap:  The energy markets slowly moved higher all week.  The continued stronger equity markets coupled with a falling dollar keep a bullish bias towards energy prices.  Even though crude oil had a larger weekly draw that was considered bullish to prices, crude oil stocks are still at a record high.  The cat and mouse game being played is the economy is not improving fast enough for the Feds to quite the stimulus programs therefore the stock market equities continue to firm and the energy markets follow higher.  Any sign the Feds will discontinue the stimulus will lead towards a stronger dollar and weaker energy markets.  It will be interesting to see if the June rally can continue next week.

Forecast:  Even though markets moved higher all week I am sticking with we will not break out higher out of the current trading range.  Eventually the Feds will start reducing stimulus dollars and the equities and energies will return to the lower portion of the trading range.

Customers that missed the early buying opportunity are now having a second chance to acquire inventory or contract for and summer and fall.