TransCanada’s controversial Keystone pipeline leaked close to 5,000 barrels of oil yesterday on the North and South Dakota border. This prompted the shutdown of the pipeline yesterday morning which ships Canadian crude oil down south to the U.S. Gulf Coast. This is the primary driver for WTI’s rally today, up $1.26 to $56.40/barrel. The market has also traded lower throughout the week so we are due for a technical bounce heading into the weekend before the Thanksgiving holiday. RBOB has been the laggard as it has fallen from $1.8124 last Friday, to currently trading at $1.7471/gallon. ULSD is higher on the day by $0.0345 to $1.9366/gallon.
Trading volume does appear to be a little light today, perhaps adding to why WTI is being squeezed up so much. We’ve failed to break through the $55 support this week, and now it may be trying to retest $57/barrel. Next week’s trading volume will be extremely light with the holiday, but traders will be positioning themselves for the November 30th OPEC meeting as it appears Russia is still unsure if it wants to extend the production cut for all of 2018.
Tesla unveiled its Class 8 electric semi-truck to the world last night. Although not too many details were released as far as the cost, how it will be serviced and charged, Tesla did disclose the batteries had a 500 mile radius. These trucks are suppose to be more economical and have better performance than traditional diesel trucks, but there is still a long way for them to be a game-changer on a grand scale to replace the status quo of diesel trucks.