50 Shades of Grey

By: Daniel Guttman / April 25, 2016

The market is currently trading up across the board. NYMEX WTI, which is now trading in June, is up at $43.84/bbl, RBOB is up an aggressive eleven points to $1.5320, and heating oil is up slightly over a penny at $1.3203. Take this with a grain of salt though, as I have witnessed this market change colors like a chameleon since walking into the office this morning.

The market is completely in limbo from my point of view. Each article posted on Bloomberg, Reuters, NY Times, etc… deviates from one to the next; bullish to bearish. As an article from oil broker PVM will tell you, it’s quite difficult to make up our own minds about whether we are bullish or bearish of the market, so think about how technically tough it is for the market to go one way or the other.This morning’s gains can be attributed to a few things: the EIA showed another weekly drop in U.S. crude output last week, Baker Hughes data disclosed another weekly decline in U.S. oil rig counts, and the U.S. dollar weakened. On the other hand, at any moment the market could go red. Iran is feverishly approaching 4mbpd, Iraq and other non-OPEC countries are planning on increasing production, and last week’s supply disruptions in the Middle East have ceased.

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As a PVM fundamental report perfectly states, bullish and bearish cannot be viewed as black and white. This market has gray area, it is shaded, unclear, and indefinite. The worldwide crude oil market is completely exposed and vulnerable to rumors, making it one of the most impossible games to pick teams for. Additionally, point of view changes the entire game. Are you an insider looking out or an outsider looking in? For example: $45 a barrel is “not bad” according to Indonesia’s governor to OPEC; however $45 crude has brought U.S. oil rigs down under November 2009 levels which, among other things, has caused tens of thousands of jobs to be cut.

On an unrelated note, our local market RVP season is upon us. Starting next week, all gasoline deliveries into Pittsburgh locations and its surrounding areas will be lower RVP product. Anticipate a slight increase in wholesale prices and prices at the pump as summer grade gasoline season kicks off.

**To further prove my point regarding volatility, the market is now red across the board. As I write this, crude is down $0.36 to $43.37, RBOB is down fifty points and heat is down ten points.

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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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