Storms Settle In The Atlantic And Energy Futures Drift Lower Into The Weekend

Energy futures are drifting lower this morning on what seems to be the recurring news that OPEC+ plans to implement aggressive output increases early this fall. The prompt month ULSD contract is leading the way, trading about .5% lower in pre-market activity, with RBOB trailing at -.3% and WTI crude just on the red side of flat.

The Russia-Ukraine war continued to escalate Thursday with Moscow bombing Kyiv, killing three and injuring dozens. This latest strike is in retaliation for Kyiv’s Sunday surprise “Spiderweb” attack that struck 41 Russian military aircraft at five different bases spanning the breadth of the world’s largest country. Ukraine hit back again this morning, torching a strategic fuel plant in Saratov Oblast for the second time since Russia invaded in early 2022.

The area the National Hurricane Center had their eye on earlier this week no longer shows signs of cyclonic development, nor does the entirety of the Atlantic Basin, for the next week seven days, at least. The NOAA published their hurricane outlook late last month, predicting an above-average year for storm activity.

Trump and Xi had a call yesterday, easing worries of unending tariff threats and counterthreats between the two economic heavyweights. Energy policy wasn’t the likely topic of discussion yesterday as the U.S. grapples with its increasing demand for rare earth minerals and China’s chokehold on its supply. It is unclear if Xi commiserated with Trump on his break-up-crash-out with Musk; the White House says they are totally not getting back together.

The May jobs report, published by the Bureau of Labor Statistics, showed the U.S. added 139k jobs last month while the headline U-4 unemployment measure bumped up .1% to 4.2%. Energy futures have since flipped positive ahead of the market open.