Crop Production, USDA Supply/Demand And WASDE Reports On Tap Today. The Corn & Ethanol Report

On the Crude Oil front, the void created by the rift between Saudi Arabia and United Arab Emirates makes room for speculation of an upcoming price war. You would think after 2020 and going negative oil producing countries would do all they could to keep prices in balance, after going negative only last year. Julian Lee with Bloomberg reports that Saudi Arabia and Russia, the alliance largest producers and de facto leaders, had devised a plan for the group to raise its production target by 400,000 barrels a day each month until the end of the year, and possibly longer. For good measure, they wanted to extend the output until the end of 2022, Instead of April. The UAE refused to do so if the alliance didn’t address what it sees as an unfairly low baseline production level from which its cuts are measured. The Saudi’s balked at fiddling with that at the starting point and, more importantly, it would not approve the output increases without the extension. It blamed the UAE for blocking an agreement to pump extra oil the market will need in the coming months. As news of this failure sank in oil prices soared, with West Texas Intermediate (WTI) hitting 2024 highs.

On the Natural Gas front, team Biden is running aground again on transportation of energy and other dangerous cargo moved by rail just does not make sense. It would be cheaper and would add public safety in transporting the fuel. If energy companies were able to add pipelines it would secure cheaper electricity bills and would not be so bottlenecked to force shutdowns as the pipes froze with slowing the flow and like last year the freeze that hammered Texas would not have been that disastrous, Thanks to Big Government. I hate to be redundant but is cheaper to operate a system and the more systems that flow will make it safer for the consumer and producers?

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