Americas Distributor Consolidation: Parkland, a Canadian based fuel supplier, will be acquired by the U.S. firm Sunoco in a deal valued at $9.1 billion (USD). The deal would create the largest independent fuel distributor in the Americas and generate approximately $250 million in run-rate synergies by year three according to the announcement while maintaining the Burnaby Refinery that had been owned by Parkland. 

OPEC Production: Oil prices fell about 1% in the overnight as OPEC+ decided to further increase the speed of oil output hikes, which have increased concerns about the product in an environment with uncertain demand. Expectations of a slowing economy, and therefore a slowing in demand for energy, will continue to weigh on energy prices and be exaggerated when more supply comes to market. 

New Tariffs: A new tariff from the Trump administration has been assessed to the movie industry - inducing new fears around tariff uncertainty. The tariff outlined by Trump would include a 100% tax on movies produced outside of the United States. The decision to include additional tariffs on products ahead of the Federal Reserve monetary policy decision later this week, has also caused the market to recoil slightly. 

Market Overview: Petroleum futures are starting the session lower as the markets digest the increase in crude oil production coupled with demand uncertainty as a result of a disrupted global market. Stock futures also appear to be starting the day lower as additional tariffs on movie production hits those sectors - renewing concerns from Wall Street that developments on the topic are far from over. 

Heating oil contracts have been falling from year highs back in January. Most recent values appear to be attempting to break under the $2/gal mark and remain under it. Current support at 1.93 might be a hurdle for the contract, while Relative Strength might also be signaling a bounce back higher is near. With demand uncertainty and crude oil prices under pressure, it is possible that any bounce back up might not be a major move back into the 2.20-2.30 range near term. 

Oil prices settled lower on the day after OPEC increases production - stoking fears that the market will become saturated with crude oil supply during an uncertain demand outlook. OPEC+ announced output will increase 411,000 bpd above their original production forecast for the month. According to some analysts, the source of the production increase is from Saudi Arabia and it is as much about challenging U.S. crude oil production as it is about punishing OPEC+ members who strayed from production compliance. The move would help OPEC regain some market share of crude production. Currently, nearly 60% of global crude production is from non-OPEC countries.