Diesel and gasoline sky rocketed upwards this morning, with both up $.05 cents as of 12:15 pm ET, and crude jumping $1.18 as well. The market is up on the following:
- Flooding in Houston caused the Cedar Bayou facility to close. No pipeline originations can be made from here for two cycles until water recedes. This will impact Florida and Georgia mostly.
- Oil industry strike in Brazil; Petrobras has slowed crude output by about 25%.
- Force majeure on Libyan crude loadings.
- Rally has pushed technicals through the 34 and 55 day moving average resistance levels, further exaggerating rally.
Other interesting news:
- Iraq suspends exports of Kurdish crude oil arriving at the Turkish port of Ceyhan.
- Russia to draw on sovereign wealth fund by 2017 if budget deficit is not trimmed.
As we head into the latter half of the day the market continues to surge on crude and products. Meanwhile, early Bloomberg estimates of the weekly update on U.S. oil inventories sees crude stocks building by 2.1 million barrels with a 500,000 barrel fall at the Cushing delivery hub, and a respective 1.3 million and 2 million barrel draw in gasoline and distillate stockpiles.