Today’s Market News • Philadelphia Energy Solutions (PES): After the June 21st fire and official shut down July 1st of the PES refinery, there has been a loss of gasoline supplies by approximately 160,000 b/d and 100,000 b/d of distillate supplies. In the first few days of July, around 18 tanker ships, totaling at least 5.6 million barrels of gasoline has been scheduled to set sail to the East Coast. Hopefully these cargos will help keep RBOB futures controlled.
• Jobless Claims/June Unemployment: In the week ending June 29, initial claims were 221,000, a decrease of 8,000 from the previous week’s level. The 4-week moving average was 222,250, an increase of 500 from the previous week’s average. Total nonfarm payroll employment was little changed at 3.7%, the U.S. Bureau of Labor Statistics reported today. Notable job gains occurred in professional and business services, in health care, and in transportation and warehousing.
• Energy Stocks: Of the draw of 1.085 m/b on crude, PADD 5 showed the biggest draw of 2 m/b as California refinery issues finally start to subside. On distillates, most of the build was seen in PADD 3 and, the gasoline stock draw, no surprise, was in PADD 1, east coast.
• Market Opinion: Oil markets are showing weakness this morning, equity markets are also opening slightly lower while the dollar was showing some slight strength to start the day. Poor global economic fears are affecting oil prices today after German manufacturing data showed a 2.2% drop. With that said, the European Central Bank may be forced to bring more monetary stimulus the help the economy.