8/11/15 Market Update

By: Daniel Guttman / August 11, 2015

Buying yesterday lead to a sharp increase in all markets, and created a surge in the market. This was mostly driven by the market being oversold, and the dollar showing some weakness. Most of that jump has eroded this morning, as the market drops off to make up for yesterday’s rally.

Reuter’s researchers and forecasters reported more gloomy economic data emerging from China to strengthen concern amongst traders who had begun to increase their long positions on speculation that the market was at the bottom. Today’s most reported news is the Chinese decision to devalue its currency by nearly 2%. This is the biggest single day fall of the yuan since 1994.  The move will make imports more expensive sparking fears of a slowing of oil imports by traders and hurting commodity prices.

Reuters also reports that U.S. oil production from the largest shale areas are forecast to decline for a fifth consecutive month in September, data from the U.S. Energy Information Administration showed on Monday. Production from those three plays is expected to drop by nearly 75,000 barrels per day in September from August, the EIA said in its monthly drilling productivity report. Nonetheless, OPEC production is reaching record highs so this is not enough to push the market up. There is news from Saudi Arabia trimming of supply, so this could help prices find a floor.                                                       

Lastly, BP announced that it was forced to shut the largest (250,000 bpd) crude unit at its 420,000 bpd Whiting, IN refinery and gave no estimate for it coming back on line. This has Chicago gas rallying +20 cents and ULSD +5-10 cents.

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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