Refinery Outages in the Gulf of Mexico
Energy prices are drifting higher this morning with several factors taking credit for the positive sentiment. Continued refinery outages in the Gulf of Mexico, optimism surrounding global economic recovery, and a weak US dollar are all being mentioned this morning. Gasoline prices are leading the way this morning with prompt month futures up just over 1%, diesel and American crude oil trail slightly adding just .5% so far today.
Planning on driving this weekend? You’re not alone. The EIA published an article this morning noting the highest retail gasoline prices we’ve seen since 2014. While speculators like betting on higher gas prices going into holiday weekends, the EIA attributes the rise in prices to an increase in vaccinated travelers, low national gasoline inventories, and higher crude oil prices.
Hurricane Larry churning out in the middle of the Atlantic is set to become a major hurricane by this time tomorrow. While it’s path is anything but set in stone, extrapolating its current trajectory has it slamming into the island territory of Bermuda and possibly the US Atlantic seaboard. The Northeast has already been drenched by multiple storms so far this hurricane season, the latest of which, fallout from Ida, has caused widespread destruction in the area.
The Bureau of Labor Statistics just published their September payroll report this morning. The official unemployment rate (U-3) continued to edge lower but its rate of recovery has slowed this month leading to increase in Delta variant concerns. Equities and the US dollar extend modest losses this morning on the news.