10/13/2015 Market Update

By: Daniel Guttman / October 13, 2015

As Monday’s crude prices came to a settle, it has become clear that last week’s market surge was unrelated to market fundamentals. “Technically” speaking yesterday’s price drop was driven by technicals and the situation in Syria. The market is somewhat flat as of 10:45 AM ET, for both diesel and gasoline, with crude up .50. The crude bounce is on the dollar drop and the oversold market yesterday.

Market analysts at Genscape, a leading provider of date intelligence in commodity markets, forecasted a 1.1 million bbl build in Cushing, Oklahoma, where WTI is delivered. A preliminary Reuters poll indicates a U.S. crude inventory build of 2.8 million bbls, while diesel and gasoline inventories are forecasted to draw 1.7 million bbls. If this data is confirmed, it will be the third weekly increase of crude inventories in a row.

cr

As the chart indicates, the U.S. is flush with crude, compared to the last year and several years prior. It has fallen off slightly from the 1st quarter, but has flatlined since.

In world news, China’s exports dropped by 3.7%, significantly less than the expectation of a 6.3% drop by Reuters. The country’s trade balance has grown over the last 2 months, but at this pace it is likely going to miss it’s 7% growth target, which would increase worries about the global economy.101315


Daniel Guttman

Written by

Daniel Guttman

With a background in wholesale and commercial sales as well as pipeline scheduling, Daniel is currently the Manager, Business Development in the Card Access Fuels department. He is tasked to find new and innovative solutions to increase sales opportunities for the sales team while managing and evaluating internal department processes. He assists with day to day personnel management, customer data analysis, as well as the daily Pacific Pride inventory and pricing direction.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


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