Results

The Bulls fought back in the Fuels markets on Monday after belief Iran would reenter the market drove prices down last week. However, a Reuters report on Sunday suggested the Biden Administration had doubts Iran would comply with their obligations under the agreement. Aiding the Bulls and providing good news to the world in general, daily new Covid rates in India continue to decline. Recent rates are 40% of the peak in early May. New Delhi will ease current restrictions next week if cases continue to decline. On Tuesday, the updated Consumer Confidence Index posts at 10 am EDT.

The Bears followed Wednesday’s price beatdown with a similar beatdown in the Fuels Markets on Thursday. Crude, Distillates and Gasoline all traded over 2% lower with Iran claiming sanctions will soon be lifted. This could bring an additional 2MM barrels per day of crude into the market. The weekly jobs report showed the smallest number of new unemployment claims in the US since Covid. The strong report brings fears of Fed intervention to keep the economy from overheating. In India, the virus still rages but new daily cases were 276K. While the number remains high, it is well below the peak daily counts of over 400K in early May.

The Bears scored a big victory with the Fuels Markets on Wednesday. And with the DOW. And the S&P 500. And the Nasdaq. And the Russell 2000. And Cryptocurrencies. And Silver. And this author’s IRA. Fears of inflation and the Federal Reserve’s potential response pounded the markets. Adding to Energy’s woes, the EIA report defied expectations with a build of 1.3MM barrels of Crude versus an expected decline of 2.9MM. Refined product inventories were distorted by demand from plastic grocery bags filled with gasoline and other Colonial panic-stricken behavior during the past week. Thursday the weekly jobless information will be released at 8:30 AM EDT.