Peace And Prosperity. The Energy Report 11/06/2024

Voters of faith also soundly rejected the open mockery of people of faith by some in the democratic side. Most Americans rejected the notion laid out by Vice President Harris that the government would make people and institutions by the force of government to violate their faith. Some felt compelled to perform abortions and other procedures that violate their commitment to God. President Trump made huge gains with Jewish voters as they know that the Biden Harris go easy on Iran policies allowed Iran to fund antisemitic terror groups like Hamas that carried out the horrific Hamas October 7th attack against civilians and unspeakable acts on woman and children.

The stock market is also responding to the fact that US corporations and US small business are not the problem, but the Biden Harris policies were. We now will have an administration that has real business experience unlike the current administration.

We will have an administration that will work with the US oil and gas industry and not disparage them by calling them war profiteers or price gougers like they were called by Biden. President Trump will reverse many of Biden’s short sighted executive orders on energy that helped fuel inflation and caused much concern against the producers of U.S. oil and gas. Biden’s policies have been an abject failure on improving the environment. We’ve seen billions of dollars of wasted government spending and yet we have seen the failure of the administration to make any real gains on their climate pledges.

And while the outlook for US oil and gas is now going to be great again, we still must face a potential supply squeeze that is coming in part because of the Biden administration discouragement in oil and gas projects.

Geopolitical risk factors are going to exist as it will take time for President Trump to clean up the geopolitical mess that is being left to him by his predecessor. Because of President Trump’s victory there is a growing sense that Iran will lash out. Iran realizes that if they wait until Trump is in office to attack the blowback might be significant. Israel of course is on guard and even potentially talking about a preemptive strike.

Global inventories of oil are also extremely tight. There’s not much room for error hedge as funds that have been selling oil into the election may reverse those bets. There’s going to be no incentive to continue to short oil ahead of an election.

The API Reported that US Crude supply 3.132 million barrels. Gasoline supply is down by 928,000 and distillates down by 852,000.

Natural gas pulled back after a Hurricane Rafeal pop. EBW Analytics points out that a historically bearish weather backdrop to start the heating season continues to lift the storage trajectory towards 4,000 Bcf and put downward pressure on natural gas. Henry Hub spot prices reached just $1.37 Monday. Daily heating demand could more than double over the next ten days and LNG may continue higher while a combination of Permian maintenance and Marcellus shut-ins limit supply—potentially creating updrafts for natural gas. Nonetheless, continuing natural gas storage injections into mid-November may yield soft Henry Hub spot price realizations—weighing on NYMEX futures.

Fox Weather is reporting that Rafael strengthens into Category 2 hurricane as Cuba braces for damaging winds, life-threatening storm surge. Millions of people along the U.S. Gulf Coast from Texas to Florida are now keeping their eyes on the hurricane as it slams Cuba with damaging, hurricane-force winds, a life-threatening storm surge, and destructive waves along the coast.

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Call Phil Flynn to open your futures trading account 888-264-5665 or email pflynn@pricegroup.com.