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Trends in Energy Prices, Autumn 2017

Posted by Bob LaFlamme on Fri, Oct 06, 2017

energy newsThe report below provided by Hedge Solutions highlights some of the factors driving energy and heating oil prices for New Englanders as we head into Columbus Day Weekend, 2017.

The Fed is Unwinding its Balance Sheet

The Federal Open Market Committee (FOMC) announced last week that it will begin unwinding its $ 4.5 trillion balance sheet beginning next month. Aaccording to CME’s FedWatch tool, expectations are that the next rate hike will occur in December. Tighter monetary policy is typically supportive for the US dollar, which is then unsupportive for dollar-denominated crude oil prices, but the US dollar had until recently been on a downward trend since the fall.

Meanwhile refining activity on the Gulf Coast has rebounded to the five-year average post-Harvey, but still remained well below pre-Harvey levels as of last Friday. The EIA, in its latest Short-Term Energy Outlook, forecasts that average annual US oil production will rise to an all-time record high next year.

To read the whole Energy Procurement Report, just click on the image below to view the complete report full size:

energy report oct 2017

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Tags: Oil Prices, Energy News