8/5/2015 Market Update

By: Angela Agostinone / August 5, 2015

Breaking a four-day downward trend, U.S. futures closed up yesterday, +$0.57 on WTI. Brent has failed to close above $50/barrel Monday or Tuesday this week, while WTI has been hovering around the $45/barrel mark for a while now.

wti_brent

Last night, the API weekly figures showed there was a draw in crude by 2.4 million barrels, with only 504,000 barrels coming from Cushing. The API reported that gasoline had a draw of one million barrels, while on the other hand, there was a build of 1.7 million barrels on distillates.

However, the DOE stats, as of this morning, showed that there was actually a draw of 4.4 million barrels for crude. The stats also showed that there was a build of 811,000 barrels in gasoline, and as for distillates, a build of only 709,000 barrels; rather than the 1.7 million barrels API reported.

In current energy news, the U.S. House of Representatives will need a two-thirds vote to override President Obama’s nuclear agreement between Iran and the six world powers. If passed, this agreement could result in an extra 500,000 bbl/day of crude to enter into a world market that is already oversupplied. Coupled with OPEC’s decision to ramp up production, we are left with the question of how low will oil prices fall? Is $40 a barrel in the realm of possibilities? $30 a barrel? $20? Or will U.S production significantly slow down in the upcoming months to remedy this current state of oversupply? We shall see.


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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