"U.S. Gov't is building a deep inefficiency into an oil market that has spent decades becoming incredibly efficient."- Why?
FED INFLUENCE OVER OIL GROWS
Winter Weather Arrives, Somebody Should Tell Energy Futures.
Author: Brynne Kelly 2/05/2023
INTRO
Last week we were dealt a decent hand of news items that should have moved the dial higher in energy markets:
The coldest temperatures of Winter 2022-23 swept across the Northeastern US and parts of Canada
EU finally agreed to price caps on refined products, threatening supply- during the cold snap
A Chinese balloon with questionable intentions traveled across the entire US
The weekend cold weather was an immediate concern and would normally cause Futures to percolate and did so in spot markets. The Chinese balloon and EU price cap agreement are nuanced issues but in combination with the weather, should have given energy markets a kick. But seemingly, none of these headline items offered appreciable support to prices.
Finally Some Winter Weather
A blast of Arctic cold swept across the northeastern United States and parts of Canada over the weekend.