$60 Oil?

By: Angela Agostinone / September 27, 2017

Yesterday, WTI crude closed down $0.34 to $51.88, HO closed down $0.0110/gal to $1.8453, and RBOB finished down $0.0232/gal to $1.6988.  The losses in yesterday’s session were a slight correction from Monday’s rally.   WTI crude is holding above the key psychological level of $50/bbl and is thought to be headed towards $60/bbl by years end.  It is important to note, the spread between WTI/Brent is the widest it has been in 2 years.  WTI closed yesterday at $51.88/bbl and Brent closed at $58.44/bbl, over a $6/bbl spread. 

Last night’s APIs were more on the bullish side with an unexpected draw in crude.  The APIs showed a 761,000 barrel draw in crude inventories, signaling an uptick in refinery run rates since Hurricane Harvey.  Distillates reported a draw of 4.5 million barrels, and gasoline had a build of 1.5 million barrels.  This morning, gasoline lead the way into the red, while heating oil was relatively flat. 

The DOE statistics released today showed a crude draw of 1.8 million barrels. Gasoline built 1.1 million barrels, and distillates, the largest difference from the APIs, only drew 814,000 barrels. Refinery utilization was up 5.4% in total.  After the release of the Weekly Petroleum Status Report, the market reacted accordingly.  WTI is current trading slightly higher, and both refined products are down.  HO only is off $0.0075/gal and RBOB off over $0.04/gal.  Also putting some pressure on the energy sector is the stronger U.S. dollar.  The dollar rallied after the Fed’s hawkish announcement from Janet Yellen stating a rate hike later this year is expected. 

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Categories: Daily Market Update

Angela Agostinone

Written by

Angela Agostinone

Angela manages daily price changes from suppliers to ensure Guttman Energy customers are getting the most current and competitive rack prices. She is also responsible for relaying supplier product allocations to Guttman Energy's sales and logistics team, as well as analyzing specific benchmarks such as OPIS, Platts, and Argus to ensure each customer is getting the greatest value from their contracted fuel purchases.

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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