Crude Oil
The energy market are under pressure from a perfect storm of supply increases, economic anxiety, and evolving geopolitical shifts.
Darin Newsom, Sr. Market Analyst with Barchart says some of the early support in the grain markets Friday morning is coming from strong export demand.
Dave Chatterton, Strategic Farm Marketing, says soybeans saw profit taking with better than expected ratings, reigniting fears of higher yields in the September WASDE. Corn saw spillover from lower soybeans and crude oil.
Garrett Toay, AgTraderTalk, says bearish outside markets spilled over to cause risk off selling in grain and livestock futures Friday, but grain markets says some profit taking and positioning ahead of the WASDE.
Darin Newsom with Barchart says grains have had a good run on fund short covering and will need some new bullish news to keep going and get above chart resistance.
As brent crude futures soar toward $100, it’s creating a new battle in the Federal Reserve’s effort to fight inflation. One money manager warns another rate hike is likely.
“A lot of people looked at the smaller landlocked crush facilities and said, ‘Does that make sense?” I think those locations will go away, and I’m not sure they should have been there to begin with,” Fife says.
The license would still bar Venezuela’s PdVSA, the state-owned oil company, from receiving any profits from the oil sales in the joint venture with Chevron.
Rep. Khanna’s Gasoline Export Ban Act of 2022 would grant the president authority to stop exports of gas when prices are high. Other government officials are instead looking at biofuels to mitigate rising gas prices.
U.S. officials are bracing for another potential oil price surge in December, if a European embargo on Russian oil goes into effect and the Saudis refuse to increase production to make up for the drop in oil supply.