Energy Markets Are The Markets To Watch
Energy markets have been a commodity to watch over the last month and a half.
Previous to Aug. 15, prices on both crude oil and heating oil had been stuck in fairly solid range. The price stood at $63-$69 a barrel on crude and $2.10-$2.22 per gallon on diesel and that dated back as far as late April. Since Aug. 15, volatility has picked up in a large way and on Wednesday, new highs were established dating back to November of 2014. Ending at $76.90, it was a high price printed on the screen for crude oil despite the biggest weekly U.S. crude supply rise of the year.
The supply build of 8 million barrels this week followed a 1.9 million rise the week prior. The last two weeks were preceded by 5 declines in inventory. Stocks of crude now stand at 404 million barrels, which is a normal number for this time of the year.
For farmers and consumers alike, this results in higher fuel prices at the pumps and on the farm. Heating oil futures markets breached the $2.40 per gallon threshold on Wednesday as they have tacked on 33 cents per gallon over the last month and a half.