10/9/2015 Market Update

By: Daniel Guttman / October 9, 2015

As this week comes to a close, there is a bullish sentiment when it comes to crude.  We are set for the biggest weekly rise in Brent crude since 2009. It is projected to rise 12% this week. U.S. crude was up $1, or 2 percent, at $50.43/bbl, the highest level in more than 2 months. 

Reuters reported that the PIRA Energy Group issued a bullish expectation for the market from now until 2017. They expect oil prices to reach $70/bbl by the end of 2016 and $75/bbl by 2017, running contrary to market consensus for a prolonged period of lower prices which will eventually slow production growth and increase consumption to rebalance markets. PIRA’s projection is interesting considering we are in an oversupplied global market.

Analysts at Swiss-based consulting company Petromatrix took a different approach regarding further commodity gains, stating that “crude can stabilize at $50/bbl WTI front anchor but to gain another $10 it will need some support from products and that is not currently the case.” There continue to be differing opinions on the future direction of the market.

Some world news that could ultimately be the drivers of this market:

  •          An Iranian Revolutionary Guards general was killed, as tensions rise in Syria.
  •          Earlier this week, Baker Hughes announced that the international rig count for September 2015 was 1,140, up 3 from 1,137 in August 2015, and down 183 from 1,323 in September 2014.
  •          European Gasoline exports rose, resulting in inventories dropping by 69,000 metric tons to 861,000 metric tons as refinery maintenance in Asia and Middle East pulled barrels from the hub.
  •          The FED’s FOMC meeting showed more policymakers than expected agreed to keep the first interest rate hike in a decade on hold.

 

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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.


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