Blog > June 2020 > Energy Market Update

Energy Market Update

June 17, 2020

What a spring it has been in the energy world!  We started the spring with OPEC and Russia not being able to agree on a production cut, then flooding the world with oil because of their disagreement.  Then the Covid-19 Pandemic hit, destroying demand almost instantly.  These two events set off an unprecedented chain of events in the energy markets few imagined could ever happen.  Below is just a few of the highlights that have happened over the past 120 days:
  • March 23rd – Nymex RBOB(gas) bottoms out at $0.4118, levels not seen in 20 years.
  • April 7th – Group 3 gasoline prices bottom at $0.1732(negative basis of $0.475)
  • April 10th – Airline travel drops to 95% of normal, creating a glut of Jet Fuel
  • April 12th – OPEC+ announces cuts of 9.7M b/d for May-June
  • April 20th – Crude oil trades negative for the 1st time ever, settling at -$37.63
  • April 21st – Reports that US is running out of room to store crude oil
  • April 28th – Nymex Diesel bottoms at $0.6104, level not seen in 20 years.
This list could go on and on, but as you all know we are living through some unprecedented times, which will create some unprecedented results. 

Since the beginning of May and as we see the country/world open back, the energy market has rallied from the lows set in April.  If we see the country/world continue to creep back toward normalcy, demand will return, and prices will continue to climb.  While prices are not at their lows anymore, they are still attractive compared to history.  We are still offering diesel contracts for the current and 2 years out, I encourage you give a call to one of our energy team members.
by Jeff Ingalls, SVP of Energy
Posted: 6/17/2020 7:23:42 PM by Mallory Shoemaker | with 0 comments

Blog post currently doesn't have any comments.