Energy Prices Are Sinking Lower
Energy prices are sinking lower this morning after the International Energy Agency released its monthly market report estimating a rise in non-OPEC production growth. The US, Brazil, and Norway look to be the culprits of the impending 2020 supply surge, boosting growth from 1.8 to 2.2 million barrels per day. Gasoline and diesel futures are down around .3% while crude attempts to hang on unchanged.
A lackluster inventory report reversed Thursday’s early morning gains with only HO prices remaining in the black. Gasoline and crude oil stock builds of around 2 million barrels and a draw of 2.5 million barrels in diesel inventories were outshined by the drop in crude imports. An oil spill causing extended downtime on the Keystone pipeline, which resulted in claims of force majeure from its owner TC Energy last week, sent US crude imports to a two-decade low.
The recent plunge in crude imports along with strong exports will likely lead to a confirmation of the EIA’s prediction that the US will be a net exporter of petroleum for the first time since the Administration has started keeping records in 1949.