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Nova Energy Market Insights

Nova Energy Market Insights provides actionable information through the analysis of market trends, pricing models, and industry news. The blog delivers Nova Energy clients a customized perspective into the financial markets that have a direct impact on their business today.

Oil Falls as US Production Rises; Declining Exports Point to Continued Builds

February 12, 2018 | Comments Off on Oil Falls as US Production Rises; Declining Exports Point to Continued Builds

WTI futures have fallen roughly 10% since January 25th as US oil production ramps up. Recent reports out of the EIA show production climbing to 10.251 million bpd from 9.919 million bpd. WTI, Brent, and Dubai crude continue their sustained backwardation despite the rise in US production. OPEC’s Monthly Oil Market Report released today acknowledges …

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Inventory Build and US Dollar Strength Entice Crude Oil Bears; Venezuela’s Declining Production Threatens Country’s Stability

February 5, 2018 | Comments Off on Inventory Build and US Dollar Strength Entice Crude Oil Bears; Venezuela’s Declining Production Threatens Country’s Stability

Crude Oil & ULSD EIA estimates for commercial crude inventories showed its first build in 11 weeks. Initial analyst estimates expected a build of 100,000 but were surprised with a build of 6.8 million for the week ending 1/26/2018. Following the surprise build, the US Dollar posted gains on Friday as the Bureau of Labor …

Inventory Build and US Dollar Strength Entice Crude Oil Bears; Venezuela’s Declining Production Threatens Country’s Stability Read More »

Crude Oil Makes New Highs as U.S. Inventories Fall for Tenth Straight Week; US Dollar Volatility Skewed Price to the Upside

January 29, 2018 | Comments Off on Crude Oil Makes New Highs as U.S. Inventories Fall for Tenth Straight Week; US Dollar Volatility Skewed Price to the Upside

In a week of political whiplash, the US Dollar stands on uncertain ground as traders grow weary of signals from the White House and Department of the Treasury. The US Dollar has been facing heavy selling pressure in recent weeks as the market rotates into other currencies such as the Euro or British Pound. The …

Crude Oil Makes New Highs as U.S. Inventories Fall for Tenth Straight Week; US Dollar Volatility Skewed Price to the Upside Read More »

Gains in Energy Complex Slow Over US Production and Speculative Positioning Concerns

January 22, 2018 | Comments Off on Gains in Energy Complex Slow Over US Production and Speculative Positioning Concerns

Concerns over higher US oil production and a crowded speculative market put the breaks on any price gains in WTI for the last week and a half. For the week ending 1/14/2018, US production rallied to 9.75 million bpd from lows near 9.50 million bpd. Current production is just below recent highs at 9.789 million …

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Refinery Outages Strengthen ULSD Basis in Gulf Coast, Mid Continent Markets; Seasonality Favors Bearish Momentum in ULSD Crack Spread

January 20, 2018 | Comments Off on Refinery Outages Strengthen ULSD Basis in Gulf Coast, Mid Continent Markets; Seasonality Favors Bearish Momentum in ULSD Crack Spread

US available capacity remains suppressed following Winter Storm Inga. Gulf Coast capacity has fallen from 10.8 million to as low as 9.5 million and currently stands at 9.7 million. Marathon, EXXON, Valero, and CITGO have suffered major reductions in production. Mid Continent refining capacity remained flat through Winter Storm Inga, but is facing reduced capacity …

Refinery Outages Strengthen ULSD Basis in Gulf Coast, Mid Continent Markets; Seasonality Favors Bearish Momentum in ULSD Crack Spread Read More »