Energy Report: Toppy And Floppy

While the Biden administration can argue other factors driving gasoline prices, at the end of the day, they own these prices. They're the ones in charge, they're the ones that are going to get the blame. Can the Biden administration point out any policy that they have supported or enacted that would reduce gasoline prices? Nope, I don't think so. Oh sure, they are against a tax on gasoline to help pay for their infrastructure program but that is a tax that doesn't even exist currently. If that's the crux of their argument, of what they've done to lower gasoline prices, then they're going to get a significant amount of blame from the American public for these prices. Deservedly so.

Make no mistake about it, the market looks technically weak right now. The risk-off mood in the stock market is not helping the situation. Why we have no doubt that the market is still going to go higher over time, in the short term we could foresee a scenario for a further correction. Most of it is technical and a lot of it is the OPEC plus disagreement. We do expect to see another big draw in inventories in the Energy Information Administration report today and that may give us a little bit of support. But from a technical viewpoint, it wouldn't be surprising to see oil prices try to test the lower Bolinger band somewhere in the $68.00 a barrel area before building some support for another potential run higher.

The natural gas market has been very solid. It's pulled back on some cooling temperatures and some thought that demand could ease. The U.S. shale industry continues to consolidate with major mergers and acquisitions announced since the second half of 2020.

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