8/7/2015 Market Update

By: Daniel Guttman / August 7, 2015

        As we continue to watch the market fall, crude finished at $44.66/bbl yesterday, inching closer and closer to the intraday yearly low we witnessed in the late winter. This morning, crude has dropped from the settle yesterday to just under $44/bbl, so it’s safe to say that the bearish trend continues. OPIS (Oil Price Information Service) analysts predict oil prices will face a huge test when crude demand drops as fall refinery maintenance hits full swing. It looks like the 2015 low on WTI isn’t an unrealistic expectation.

 

Crude oil pricing is mainly determined through worldwide demand, supply, and global events. It is the first to react to world news, and it is also the first commodity to be traded. In today’s market, the abundance of crude oil supply is currently the driving factor in the fall of the price per bbl of crude.

 

Diesel and gasoline are also impacted by global events, but they can also be influenced by regional and local news. News such as refinery fires, pipeline disruptions, regulations, and weather can all affect the market pricing of diesel and gasoline, which thus affects retail. Volatility in diesel prices spike in planting and harvest seasons; i.e., spring and early fall. In the winter, there is a high demand for heating oil, peak season for diesel demand, and increases in seasonal demand can put pressure on the prices of diesel. Lastly, volatility of gasoline spikes in the summer because of driving season and tighter supply.

 

BP says that it will shut down a 100,000 bpd crude unit at its 410,000 bpd Whiting, IN refinery.  Downtime is expected to be about 3 weeks and estimated production loss is 300,000 bbls of gasoline, and 940,000 bbls of distillate over that period of time. In addition, Marathon's Catlettsburg refinery is still down after a Sunday power outage and the restart has been delayed. This is causing some higher pricing on products in PADD 2.


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.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us