Live by the stock market, die by the stock market. As oil continues to forget about its inverse relationship with the dollar it looks to the stock market to find direction. Even as oil frets about the production destruction in the U.S., energy space worries about growth still hamper oil's price recovery. Stocks are under pressure as they are worried about Fed comments that suggest that interest rates are still going up this year coupled with concerns about China's economy is weighing on shares this morning.
Oil prices will also look to the American Petroleum Institute report to try to gage just how quickly U.S. oil production is falling. Ground zero for that debate is in the Nymex deliver point where supply has fallen 6 out of the last eight weeks.
It is a propane world. The Energy Information Administration reported that U.S. Propane inventories are at an all-time high. The EIA says that inventories of propane and propylene reached 97.7 million barrels as of September 11, the highest level in the 22 years that EIA has collected weekly propane inventory statistics. In the first six months of 2015, U.S. propane and propylene inventories were 29.9 million barrels higher on average compared to the same period in 2014. In the past year, nearly all of the increase in inventories occurred in the Gulf Coast region (PADD3).
Farmers will love it!