10/6/2015 Market Update

By: Daniel Guttman / October 6, 2015

The futures market is trading up a bit this morning after yesterday’s rally.  Yesterday, November futures contracts for WTI closed at $46.26 per barrel, marking the highest prices have been in two weeks. November NYMEX RBOB futures closed yesterday at $1.3853/gallon and November NYMEX HO contracts closed at $1.5483/gallon, both are up about 3 cents per gallon from last week and are on the high end of recent ranges.

There are a few global story lines impacting the markets this week, including the ongoing conflict in Syria and Russia’s stated willingness to discuss the global fuel supply with other major global producers. There is fear that Russia and OPEC might act together to control global production and pricing, however there are several opposing views that suggest the Saudis want to control market share by cutting prices.

Traditionally gasoline trades at a premium to diesel. Between 1997 and 2004 this premium was about 7 cents per gallon on an annual basis. Since 2007 we have seen a reversal of this trend and NYMEX HO has been trading over the NYMEX RBOB contract. The reason for this is a shift in demand for diesel. In 1998 the demand for diesel was about 18% and has climbed to 21%. This demand growth has been triggered by low oil prices resulting in increased SUV purchases within the United States. The current premium of diesel over gasoline has averaged 9 cents per gallon. In 2015 this spread will be at a five year low, raising the question of whether or not this trend will continue into 2016.

blog_photo_10-6-15


Categories: Daily Market Update


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.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us