Ponderosa Energy’s Weekly Market Bulletin

• Flooding in Missouri and Illinois is impacting crude movements into and out of the area with two pipelines currently offline (Enbridge Ozark from Cushing to Wood River, and Spectra’s Platte pipeline from Guernsey to Wood River). Product terminals also are being impacted because 50 miles of the Illinois River and 81 miles of the […]

Distillate crack spreads getting crushed

By Sarp Ozkan Ponderosa Energy The crack spread for distillates is at its lowest level in five years. The reason is simple: U.S. distillate demand is struggling and production of distillates is rising. Recently, refineries were not pulling back supply due to the high crack spread, which translated to great margins for refiners. However, once […]

Oil prices falling along with rig count

Baker Hughes today said the number of active drilling rigs in the U.S. fell by four over the past week, to 771. There were six fewer oil-directed rigs operating, with a total of 572 active. Gas-directed rigs increased by two, to 199. Today’s oil rig count is at its lowest level since June 2010, according […]

Active rigs down four over past week

Baker Hughes today (Sept. 25) said the number of active US oil-drilling rigs dropped by four over the past week, to 640 today. The number of active US rigs, including those drilling for natural gas, stands at 838, also down four from the prior week. A decline in rigs signals a likely slowdown in US […]

Crude stocks higher; build is bearish for prices

By Bernadette Johnson Crude stocks are up significantly (2.6 MMb/d) this week, while refined product stocks are down (-1.8 MMb/d). The net build is bearish for prices (WTI is at $40.64, off $1.98 from Tuesday’s close) as of this writing). Ponderosa expected a smaller build based on the unexpected shutdown of BP’s Whiting, IN, refinery. […]

Louisiana ammonia plant moves forward

The US Gulf Coast is a hotbed for industrial development, in part due to its proximity to export terminals but also because it is an area with an abundant supply of natural gas. AM Agrigen Industries, a subsidiary of Singapore-based AM International, this week provided more details about its proposed $1-billion to $1.2-billion ammonia manufacturing […]