Energies Mixed Betwixt EIA and FOMC Minutes
As of Thursday morning, 7 October 2026, Energies markets are pricing the morning’s EIA report ahead of FOMC minutes report due out at 1 PM Central Time. The morning’s EIA report showed a draw of 3.2 million barrels, which is one factor in the front month CLX26 Crude Oil WTI contract trading closer to the lows of the day down just about 47 cents at $88.97 as of this writing.
However, perhaps more of note, the chart of weekly U.S. ending stocks of Crude Oil in SPR on eia.gov shows a level of 283,767 for the week ending 9/25/26, a low level not seen since October of 1982!!
This also comes amid a potentially ominous weather forecast as tropical storm Isaias builds in the Gulf among numerous offshore platforms and refining, which, as noted previously, have to choose between already stretched capacity between gasoline and diesel. Russia and Ukraine also continue to strike each other’s infrastructure, especially Ukraine targeting Russian refining.
In addition to the crude draw from the EIA report, gasoline inventories showed a build of .4 million barrels while as the RBOB gasoline contract also has traded at/near lows.
Distillates inventories were unchanged as NY Harbor Ultra Low Sulfur Diesel Heating Oil continues to be bid, as noted previously along with other reserve draws abroad and refining which is either online and stretched near capacity, having to choose between gasoline or diesel, or potentially being lost to conflict abroad.
Many also note the potential and likelihood of Iran and Houthi attacks escalating amid midterms to maximize political damage, along with conflicting reports of increased shipping in the Straits of Hormuz and Bab al-Mandeb approximate to prewar levels…
In addition to the crude draw from this morning’s EIA and previously noted G7 diesel reserve draw in Europe, along with other reports of changes in diesel usage regulation and consideration of suspending the federal gas tax, the cascading effect and outside markets are also a factor ahead of this afternoon’s FOMC minutes.
For instance, the US Dollar continues to be bid and trade at highs against other major currencies, especially the weak Euro, Pound and Swiss Franc and the Australian and Canadian Dollar commodity currencies concurrent with higher rates and the potential battle with inflation as interest rate products along the yield curve are more heavily offered than bid ahead of FOMC due out soon.
To discuss setting up a trading strategy using some of the levels in the charts pictured above according to your risk capital and tolerance in light of these developments in the energy markets and others, please find my contact information below as well as the links to Join My Email List and Account Forms to position your account accordingly.
Michael B. O’Donnell
Senior Market Strategist
Direct: 312-957-8248
Toll Free: 888-391-7894
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices.PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.