8/31/2015 Market Update

By: Daniel Guttman / August 31, 2015

Late last week we saw a huge rally in the market, pushing crude back over $40/bbl to $45 which was an increase of roughly $7/bbl in just two trading sessions. This morning we continue to trade over last Monday’s six-and-a-half year low of $38.25/bbl; however at $44.01/bbl, down $1.21, oil prices are continuing to sense the effects of global oversupply and the volatile state of the economy in China. Diesel prices, which are currently in contango and get stronger going forward, are down three-and-a-half cents this morning to $1.5442. RBOB gasoline is down 3cts/gal as well, to $1.4918 in the front month, but $1.3484 in Oct RBOB as the spec change looms. Gasoline prices fell on average 20cts/gal in the month of August, and this time last year were roughly $1/gallon higher. Besides the global oversupply of crude and the weakening economy in China, this morning’s early drop in market prices, after last week’s historical rally, may be attributed to super-storm Erika’s lackluster performance. Last week’s rumors and predictions for the impact of this storm on the Gulf Coast market did not pan out exactly as planned. It also appears that Fred is headed north behind it.

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As we move from August into September it is important to pay attention to the RVP changeover which will occur on September 15th at midnight. Starting at 12:01 AM on September 16th, customers will be able to order/receive 9.0 # gasoline. Currently, the futures spread from 7.8# RBOB to 9.0# is roughly 13cts/gallon lower. In our area, this will affect the following regions:

PAs

*A future reminder of this changeover will come the week of the change.


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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