45 and Falling

By: Daniel Guttman / June 15, 2017

The market continued its downward motion early this morning, but currently is hovering around flat for both gas and heating oil. Yesterday the market closed down across the board, front month heating oil down $0.0375 to $1.4102/gal, front month RBOB down $0.0668 to $1.4327/gal, and WTI Crude down $1.73 to $44.73/bbl.  One of the reasons for the large losses on RBOB is weak gas demand, with supply vastly outweighing the decreasing demand. 

Crude prices have fallen a total of 13 percent since OPEC made the decision to extend production cuts. Inventories are still at record highs in different parts of the world, leading analysts to believe that prices may continue to fall.  The United States is partly to blame for this, due to a 10% production increase over the past year to 9.33 million bpd. Currently, oil prices have hit six-week lows.  Although OPEC’s total production per day is only down .3 million barrels per day since October of 2016, the cartel plans to stick with the cuts at least until the end of the first quarter of next year. 

Additional news worth nothing is that the United States Federal Reserve raised short-term interest rates by a quarter percentage point yesterday. The target range was raised from 1% to 1.25%, which is the 3rd consecutive quarterly increase.  A positive note about this increase is that it shows confidence in the United States economy and the job market is expected to rise in the future.   

Currently the market is up slightly, July HO up 10 points and July RBOB up 12 points. Note that heating oil and RBOB are almost falling in line with each other, which is unusual for this time of year.

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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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