8/6/2015 Market Update

By: Lindsay Farrell / August 6, 2015

Yesterday followed the trend we have seen lately with prices continuing to decline. On Wednesday, WTI prices fell below $45 for the first time since March, dropping almost 2% to $44.91/bbl,before closing at $45.15 (the third-lowest finish of 2015). The drop on Wednesday is illustrated in Bloomberg’s chart, below.

graph_2015.08.06

 

HO and RBOB both saw a reversal yesterday. The release of DOE stats caused an initial rally in prices, but the market sold off to finish in negative territory.

Goldman Sachs Group Inc. says crude prices need to remain low for longer to allow the market to find equilibrium amidst a supply glut. They anticipate that if the surplus of crude remains at 2 million bpd storage may be filled by fall. Even if supply and demand balance by 2016, OPEC’s production and the potential lift of Iran’s sanctions may continue to prohibit prices from rebounding.


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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