Energy Futures Are Ticking Modestly Higher In Quiet Trading Friday Morning

Energy futures are ticking modestly higher in quiet trading Friday morning with politics and basketball taking over the headlines.

The financial times is reporting that US officials put pressure on Ukraine to stop attacking Russian refineries because they “Risk driving up global oil prices” and “nothing terrifies a sitting American president more than a surge in pump prices during an election year.” If true, that puts an interesting political spin on the situation as it gives Ukraine leverage to negotiate for the artillery they’ve been begging for to fight the war in their own country, and house republicans may be more apt to continue blocking that funding even though a majority in the Senate are ready to approve it. No word yet on if US officials have also asked nicely for Russia to stop attacking Ukrainian power plants.

Another big story in energy politics this week has been the announcements from the EPA on changing CAFÉ standards and EV emissions calculations. The delays in the standards appear to be a concession to the auto industry who has said that the previous targets were unattainable and would take away union jobs.

Sticking with the political theme this morning, the ranking member of the Senate’s Committee on Energy called out the IEA Thursday for abandoning the agency’s mission of promoting energy security and instead becoming a cheerleader for an energy transition. While the IEA is an “independent” group built to counter OPEC’s influence after the embargos 50 years ago, the US does provide a large amount of the funding that allows the agency to operate.

The EIA published an analysis on the South China Sea Thursday, highlighting the various disputes and conflicts that keep the region on edge. More than a third of all petroleum shipped by sea moves through the South China Sea, with a staggering 28 million barrels moving every day.

Pemex reported a leak at its 312mb/day Deer Park refinery that spilled oil into the Houston Ship channel Thursday, but the spill appears to be caused by a sump pump, and not a refining operating unit, so the news has been largely shrugged off.

Bracket busted? Don’t worry, you’re not alone.

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