7/31/2015 Market Update

By: Lindsay Farrell / July 31, 2015

Despite positive news about the U.S. economy, oil prices continued to decline yesterday, due to a strengthening dollar and OPEC’s announcement that they will not cut production, as they believe that the oil demand will continue to increase. Data does not support this demand, especially in light of China’s economic issues. During Q2, OPEC produced over 31 million bpd, which is 3 million bpd over demand, forcing the excess production into storage around the world. The decrease yesterday was widespread, as commodities had their worst day since 2011.

Gasoline demand remains high and U.S. refineries continue to struggle to keep up, despite running at high utilization. Refineries are expected to run at near full capacity throughout the remainder of the summer with motorists traveling record miles due to low gas prices and seasonal driving patterns. U.S. is still importing approximately 600,000 bpd of gasoline, which is typical to meet summer demand.


On Thursday, the U.S. Senate Energy Committee passed a bill to lift the 40-year ban on the export of crude. However, it is likely that this bill will struggle to make it through the full Senate with Democrats fearing that lifting the ban may lead to higher gasoline prices in the U.S. Many believe that Democratic support is crucial to gain President Obama’s support to exportcrude.

Categories: Daily Market Update

Lindsay Farrell

Written by

Lindsay Farrell

As Manager of Quality Assurance and Regulatory Compliance, Lindsay Farrell is responsible for fuel operability across the company’s terminals and customer sites, as well as keeping up-to-date with the latest regulations and best practices within the industry.

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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