It’s Been A Particularly Quiet Week For Oil Prices, With WTI Trading In Just A $3/Barrel Range

Energy futures are limping into the weekend with modest losses, as the complex seems to be in wait and see mode before making its next move.

It’s been a particularly quiet week for oil prices, with WTI trading in just a $3/barrel range, which would market its smallest high to low move for a week since the Russian invasion of Ukraine. RBOB and ULSD prices also look to be treading water before their next move but continue to favor opposite directions with diesel prices looking weak on the charts, while gasoline still seems set up for a spring rally.

The market continues to act as though it’s shrugging off the now-deadly attacks on ships by Houthi Rebels, even though some suggest this latest escalation may cause more tankers to avoid the area. Meanwhile, the not-so-hidden shadow war between the US and Iran took its latest step forward when Iran announced it was confiscating the oil onboard a ship it seized last year.

The Keystone pipeline that runs more than 600mb/day of Canadian Crude into the US was taken offline for operational issues, briefly putting a bid under oil prices, but the line was returned to service without word as to the cause of the downtime. For a line that’s been operating at max capacity for years due to other lines not being approved, and that already had a major spill a couple years ago, these “integrity issues” in the line are eerily reminiscent of what we saw with Colonial pipeline ahead of its major leak in 2016.

Busy times in Port Arthur: Energy News Today reported that Motiva was forced to shut its “smaller” 200mb/day crude unit due to an operational upset this week, just days after the country’s largest refinery in Port Arthur TX restarted its larger CDU after extended maintenance, although so far no filing has been issued to the TCEQ. Meanwhile, Total reported multiple upsets at its Pt Arthur refinery that’s apparently still struggling to resume normal operations after the January freeze knocked it offline. Valero meanwhile is reportedly starting planned maintenance at its 335mb/day refinery nearby.

Suncor received the necessary permits to continue operating its Commerce City Colorado refinery, but new restrictions on chemicals and inspection requirements will have to be overcome, along with the normal challenges of trying not to break down or catch on fire.

It appears that more favorable weather conditions have put the worst of the record-setting TX wildfire in the rearview mirror, lowering the threat to a pair of panhandle refineries. Xcel energy has acknowledged that its power lines sparked the largest of the blazes, but disputes claims of negligence in its operations. Despite reports of more than 7,000 head of cattle being killed by the fires, cattle futures have not moved much either in the prompt or forward months.