Energy  Market Comments

by Phil Flynn, PFGBEST

1-800-935-6487

pflynn@PFGBEST.com

Thursday, February 16, 2012 at 8:04 AM

The Energy Report for Thursday, February 16th 2012

By Phil Flynn 800-935-6487

Iran may be ramping up the pressure on the global markets but US refiners seem to be rising to the occasion. According to data compiled from the Energy Information Administration, Dow Jones News points out that US refiners boosted crude-oil processing by 2.2% last week to  a impressive 14.7  million barrels per day barrels day which was the highest level for the week since 2007.

This surge came as the demand for US diesel exports is going through the roof. Record cold temperatures in Europe helped send US diesel exports to a record high. Reuters News reported that according to IEA data, estimated distillate exports hit a whopping 1.124 mln bpd, up from 996,000 bpd in the previous record report. This of course led to a surprise drawdown in crude supply of about 171,00 barrels.

Yet it seems there are some small signs that Iran may try to restart talks and step back from the brink of war. Reports of supply cuts to Europe were denied yet in some ways the Iranians are acknowledging what already exist. We have seen many buyers of Iranian oil already stop buying, making it harder to sell their oil anyway. Still the Iranian premium in oil is still rising as the risk premium is probably close to $20 a barrel. In the meantime, we'll add to the mix a pipeline explosion in Syria and contuing pressure in Nigeria! Buckle Up!

The "Power to Prosper" can be yours if you tune into the Fox Business Network where you can see me every day! Is your trading in need of a makeover? It is time to call me and get a free trial to my daily trade levels and open your account! Just call me - Phil Flynn - at 800-935-6487 or email me at pflynn@pfgbest.com.   

There is a substantial risk of loss in trading futures and options.Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. PFGBEST, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.