Any ideas on why oil prices dropped $2 per barrel at Noon today?
Any ideas on why oil prices dropped $2 per barrel at Noon today?
There was a drop about 11:16 CST today, any ideas on why the drop? I am not seeing any news.
Re: Any ideas on why oil prices dropped $2 per barrel at Noon today?
WTI went green soon after the market opened on Tuesday, but here are some ideas on why it declined yesterday.
Trading Economics:
"WTI crude oil futures dropped below $73 per barrel on Tuesday, approaching levels last seen in February amid hopes for a Middle East ceasefire. US Secretary of State Antony Blinken confirmed that Israeli Prime Minister Benjamin Netanyahu accepted a proposal to address disagreements hindering a ceasefire deal in Gaza, but tensions remain high as Hamas threatens to resume suicide bombings. Additionally, production at Libya’s Sharara oilfield has increased to 85,000 barrels per day, further reducing supply concerns after a previous blockade. In the US, crude inventories are expected to have decreased by 2.9 million barrels last week. On the demand side, concerns about China’s slowing economy, marked by declining home prices, slower industrial output, and rising unemployment, are also putting pressure on oil prices. Investors are also watching for clues about the US Federal Reserve's next interest rate moves, with potential rate cuts expected later in the year."
Bottomline: There is a lot of "noise" in this world.
Trading Economics:
"WTI crude oil futures dropped below $73 per barrel on Tuesday, approaching levels last seen in February amid hopes for a Middle East ceasefire. US Secretary of State Antony Blinken confirmed that Israeli Prime Minister Benjamin Netanyahu accepted a proposal to address disagreements hindering a ceasefire deal in Gaza, but tensions remain high as Hamas threatens to resume suicide bombings. Additionally, production at Libya’s Sharara oilfield has increased to 85,000 barrels per day, further reducing supply concerns after a previous blockade. In the US, crude inventories are expected to have decreased by 2.9 million barrels last week. On the demand side, concerns about China’s slowing economy, marked by declining home prices, slower industrial output, and rising unemployment, are also putting pressure on oil prices. Investors are also watching for clues about the US Federal Reserve's next interest rate moves, with potential rate cuts expected later in the year."
Bottomline: There is a lot of "noise" in this world.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Any ideas on why oil prices dropped $2 per barrel at Noon today?
Now we have another beat down of the entire sector, the GUSH is down over 5%, we are approaching the losses experienced in early August, while the market is up. Very strange.
Re: Any ideas on why oil prices dropped $2 per barrel at Noon today?
Why do you call negatives noise?
WTI has been weak indicating plenty of supply or lower demand or both
Sep2025 futures indicate a 60 handle
Concerns with China economy
Iran is shipping , russia is shipping despite toothless sanctions
Opec cuts want to come back online
New offshore supply coming online
and US EP's have no discipline
And if Trump gets in its drill baby drill
WTI has been weak indicating plenty of supply or lower demand or both
Sep2025 futures indicate a 60 handle
Concerns with China economy
Iran is shipping , russia is shipping despite toothless sanctions
Opec cuts want to come back online
New offshore supply coming online
and US EP's have no discipline
And if Trump gets in its drill baby drill
Re: Any ideas on why oil prices dropped $2 per barrel at Noon today?
There is also a lot of positive noise, which is why we will continue to see oil price volatility.
> U.S. and OECD petroleum inventories are lower than normal, and demand does not seem to be on decline.
> Trump will enforce sanctions against Iran, which take a lot of oil off the global market.
> U.S. oil production growth has flatlined.
> A cease fire between Israel and Hamas is no guarantee of peace in the Middle East.
> U.S. and OECD petroleum inventories are lower than normal, and demand does not seem to be on decline.
> Trump will enforce sanctions against Iran, which take a lot of oil off the global market.
> U.S. oil production growth has flatlined.
> A cease fire between Israel and Hamas is no guarantee of peace in the Middle East.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Any ideas on why oil prices dropped $2 per barrel at Noon today?
A couple of follow on notes that don't necessarily impact a daily drop but will continue to put pressure on keeping oil prices low. Recent reports indicate that China has been hugely successful in converting its trucking fleets and other industrial vehicles from diesel to compressed natural gas. I guess China decided if the US wasn't going to adopt the Pickens Plan they would put it to work. Of course this is long term bullish for LNG shippers and those who supply the gas.
The other factor I mentioned in another recent post is the entry of Venezuela in BRICS and the potential alliance that is thereby established and potentially strengthened with Russia and China. Don't be surprised to see China building sea ports to accommodate its naval vessels as well assistance with the drilling, development, and export of the currently stagnated oil fields in Venezuela. With China's backing it could happen faster than one would otherwise expect.
If elected, don't expect Harris or her China loving VP to defend Exxon and Hess from aggression from China armed Venezuela in Guyana nor Apache in Suriname. We need Trump in office to get on a mission to reestablish strategic natural resource alliances on this side of the globe and keep China from seeking these alliances to our detriment.
The other factor I mentioned in another recent post is the entry of Venezuela in BRICS and the potential alliance that is thereby established and potentially strengthened with Russia and China. Don't be surprised to see China building sea ports to accommodate its naval vessels as well assistance with the drilling, development, and export of the currently stagnated oil fields in Venezuela. With China's backing it could happen faster than one would otherwise expect.
If elected, don't expect Harris or her China loving VP to defend Exxon and Hess from aggression from China armed Venezuela in Guyana nor Apache in Suriname. We need Trump in office to get on a mission to reestablish strategic natural resource alliances on this side of the globe and keep China from seeking these alliances to our detriment.
Re: Any ideas on why oil prices dropped $2 per barrel at Noon today?
From recent Wood Mackenzie report
China’s sales of heavy-duty trucks powered by liquefied natural gas (LNG) rose from below 10% to reach as much as 30% of the market in the latter months of 2023 resulting in the displacement of over 8% of road diesel demand in the country according to a report by Wood Mackenzie.
The report: ‘The threat to diesel from LNG trucking in China’, states that around 220,000 barrels a day of road diesel demand has been replaced by LNG as end-users take advantage of a number of favourable conditions for switching to LNG-fuelled vehicles.
“China has been implementing various policies to promote LNG trucks and restrict diesel trucks as part of its efforts to reduce air pollution and lower carbon emissions, including encouraging re-fuelling infrastructure,” says Shiqing Xia, Consultant for Oils and Chemicals at Wood Mackenzie. “Low natural gas prices have also helped in making the switch to LNG-powered vehicles more attractive.”
The report adds that heavy-duty trucks account for over a quarter of the commercial vehicle fleet in China, reaching 8.76 million vehicles by 2023. The number of diesel trucks peaked in 2021 and has been declining thereafter, resulting in LNG’s share of the heavy trucking fleet to increase to over 9% by 2024.
China’s sales of heavy-duty trucks powered by liquefied natural gas (LNG) rose from below 10% to reach as much as 30% of the market in the latter months of 2023 resulting in the displacement of over 8% of road diesel demand in the country according to a report by Wood Mackenzie.
The report: ‘The threat to diesel from LNG trucking in China’, states that around 220,000 barrels a day of road diesel demand has been replaced by LNG as end-users take advantage of a number of favourable conditions for switching to LNG-fuelled vehicles.
“China has been implementing various policies to promote LNG trucks and restrict diesel trucks as part of its efforts to reduce air pollution and lower carbon emissions, including encouraging re-fuelling infrastructure,” says Shiqing Xia, Consultant for Oils and Chemicals at Wood Mackenzie. “Low natural gas prices have also helped in making the switch to LNG-powered vehicles more attractive.”
The report adds that heavy-duty trucks account for over a quarter of the commercial vehicle fleet in China, reaching 8.76 million vehicles by 2023. The number of diesel trucks peaked in 2021 and has been declining thereafter, resulting in LNG’s share of the heavy trucking fleet to increase to over 9% by 2024.
Re: Any ideas on why oil prices dropped $2 per barrel at Noon today?
More than 15 years ago, during another period of high oil prices and low natural gas prices, I attended a symposium at Rice University in Houston. The topic was what it would take to transition a high percentage of large trucks (18 wheelers) in the U.S. from diesel to natural gas. At that time the conversion cost was about $15,000 per truck. At that time we were talking about compressed natural gas (CNG), not liquified natural gas (LNG).
The trucking companies in attendance had two major concerns:
> There will need to be tens of thousands of CNG filling stations built along the U.S. highway system first. Who will do that?
> Trucks would need to stop to refill their tanks at least twice as many times. Time is money. Using LNG instead of CNG might solve this problem, but my guess is that the conversion cost would be much higher.
> The trucking companies did understand that they would save a lot of money on fuel costs.
For a tiny fraction of the money we are pissing away in Ukraine, this could be done in the U.S.
> The technology to do this does exist and internal combustion engines run well on natural gas.
> Give the trucking companies subsidies to pay for the conversions and let them deduct the full cost for income tax purposes.
> Mandate that all truck stops on the highway system install CNG filling stations. Most of them are close to natural gas pipelines already.
BTW we are running out of black oil, which is needed to make diesel. This would lower carbon emissions and probably lower transportation fuel prices.
The trucking companies in attendance had two major concerns:
> There will need to be tens of thousands of CNG filling stations built along the U.S. highway system first. Who will do that?
> Trucks would need to stop to refill their tanks at least twice as many times. Time is money. Using LNG instead of CNG might solve this problem, but my guess is that the conversion cost would be much higher.
> The trucking companies did understand that they would save a lot of money on fuel costs.
For a tiny fraction of the money we are pissing away in Ukraine, this could be done in the U.S.
> The technology to do this does exist and internal combustion engines run well on natural gas.
> Give the trucking companies subsidies to pay for the conversions and let them deduct the full cost for income tax purposes.
> Mandate that all truck stops on the highway system install CNG filling stations. Most of them are close to natural gas pipelines already.
BTW we are running out of black oil, which is needed to make diesel. This would lower carbon emissions and probably lower transportation fuel prices.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Any ideas on why oil prices dropped $2 per barrel at Noon today?
China is forging ahead with real energy solutions while back home in the US we block pipelines, delay permits, and push wind and solar. we have spent billions on buildout of electric charging stations on highways and last I hear they had actually built 6 -8 working (at least some of the time) charging stations.
In the meantime......
BEIJING, June 19 (Reuters) - China's first nuclear-based steam generation project began production on Wednesday, state-run China National Nuclear Corp (CNNC) said in a Wechat post announcing the latest step in Chinese efforts to decarbonise heavy industry.
The Heqi No. 1 project at the Tianwan nuclear plant in eastern Jiangsu province produces steam to be used by a petrochemicals operation in the port city of Lianyungang.
The project and the Tianwan plant are run by CNNC's China National Nuclear Power Co (601985.SS), opens new tab.
In the meantime......
BEIJING, June 19 (Reuters) - China's first nuclear-based steam generation project began production on Wednesday, state-run China National Nuclear Corp (CNNC) said in a Wechat post announcing the latest step in Chinese efforts to decarbonise heavy industry.
The Heqi No. 1 project at the Tianwan nuclear plant in eastern Jiangsu province produces steam to be used by a petrochemicals operation in the port city of Lianyungang.
The project and the Tianwan plant are run by CNNC's China National Nuclear Power Co (601985.SS), opens new tab.
Re: Any ideas on why oil prices dropped $2 per barrel at Noon today?
I think the democrats hate energy because most of the focus are in Red states.
They aren’t getting my gas stove.
Dan and Chuck you are both right.
They aren’t getting my gas stove.
Dan and Chuck you are both right.