The oil complex is trading higher this morning led by notable gains in fuel prices. Crude prices traded mostly flat yesterday closing a mere 2 cents lower. This morning, WTI crude is currently trading at $74.19, up 34 cents since yesterday.
Fuel prices moved higher yesterday strengthened by strong summer demand and operational issues at eight refineries. Diesel prices are currently $2.2223, a gain of 2.6 cents since yesterday’s close. Gasoline prices are $2.1668, up 1.8 cents.
Brent crude prices are pushing higher this morning following news of a workers strike on offshore oil rigs in Norway. Hundreds of employees have rejected a proposed wage deal leading a Shell-owned refinery to shut down taking around 24 kbpd off the market. The strike has heightened the market’s fear of unexpected outages in a world with little spare capacity, providing support to International prices which traded over $79 this morning.
The Storms are Coming
Last Friday Hurricane Beryl marked the first Atlantic hurricane of the season. Beryl traveled into the Lesser Antilles last weekend causing some power outages in Puerto Rico before turning back into a tropical storm. There is a possibility for the storm to touch parts of Florida soon.
Tropical storm Chris is also expected to become a category 1 hurricane off the Eastern Coast. As of this morning, the storm’s winds are traveling at 70 mph. Soon-to-be Hurricane Chris is not expected to hit the U.S., but will instead travel northeast along the coast and hit the easternmost parts of Canada. Mansfield’s supply team will continue monitoring the storm and will provide updates as needed.
President Trump Nominates a New Supreme Court Justice
On Monday, President Trump nominated Brett Kavanaugh to replace Supreme Court Justice Kennedy after the announcement of his retirement. Justice Kennedy acted in many cases as a swing vote, meaning this position could have major impact on future Supreme Court decisions. Energy will inevitably be a topic for the Supreme Court in the future and if Kavanaugh is voted in by the senate, he could be the deciding factor in many cases.
Looking at Kavanaugh’s 12-year history as a judge on the DC Circuit Court of Appeals, it’s apparent he has favored energy corporations over the EPA and others in the past. He has a clear track record of disapproval towards environmental regulations put forth by the Obama administration. Although he has generally favored the energy sector, in 2017, he ruled against the EPA and fossil fuel companies in favor of renewable energy.