Here are some early market thoughts from Flashpoint’s Darius Lechtenberger:
“WTI crude oil and refined product prices are climbing higher this morning, buoyed by expectations of increased demand as colder weather settles in. Expectations of tighter sanctions on Iranian and Russian oil exports are added further momentum under the Trump administration. Market participants are closely watching upcoming economic indicators for insights into energy consumption trends and the U.S. Federal Reserve’s interest rate trajectory. Key highlights include the Fed’s meeting minutes on Wednesday and Friday’s December payrolls report. Meanwhile, propane prices have been on a remarkable rally since Christmas, with Belvieu propane surging by $0.1125 (15%) and Conway soaring $0.1200 (16%).”
The heart of the country was blasted with a massive snow and ice storm on Sunday, and it continues to make its way eastward, with some possible additional snow happening late this week, with the Northeast looking to bear the brunt of this one. Still, the Ohio Valley could also be impacted. Propane values are stronger this morning, as is crude oil. Colder-than-normal temperatures could prevail over the eastern half of the country. The image below shows the below-freezing line (dark blue edge line) for the US this morning, with areas north of that line below freezing.
