As we honor Martin Luther King, Jr today, keep in mind that there will be no formal pricing, the market is only open to electronic trading, and there will be no settle price on crude or refined products. With that said, crude is still trading under $30/bbl, after losing $3.74/bbl (-11.3%) last week; heat is down around $0.9243 and RBOB is at $1.0312.
- Iran is now ready to increase its crude oil exports by nearly 500,000 bbls/day now that the international sanctions have been lifted.
- Global oversupply is somewhere around 2 million bbls/day even before Iranian oil.
- Early morning electronic trading today showed a tick of $28.36 on WTI, the lowest intraday trade since October 2003.
- Last week, U.S. oil rigs fell by 20 to 515, and the combined (oil and gas) rigs fell by 34 to 650.
- Domestically, oil is now so abundant and cheap that some purchasers actually want to be paid to pick it up. According to Bloomberg last Friday, Flint Hills Resources LLC said it would pay $0.50/barrel for its North Dakota Sour.