9/16/2015 Market Update

By: Angela Agostinone / September 16, 2015

Yesterday’s trading session ended with crude closing up $0.59/bbl to $44.59, RBOB up $0.0286/gal to $1.3329 and HO down $0.0035/gal to $1.50. Last Tuesday, WTI was $1.35 more expensive at $45.94, RBOB was $0.0692/gal more expensive at $1.4021, and HO was $0.0938/gal more expensive at $1.5938. A week of declines could end today, with the refined product futures of HO and RBOB are currently trading around four to five cents higher than yesterday’s settlement prices.

The 4 to 5 cpg increase in the market is a direct reflection of the data released by the API last night. The API Data release show that US crude inventories had a 3.1 million barrel draw, 1.5 million barrels of which was in Cushing, OK. There was a build in gasoline of 518,000 barrels and a build in distillate of 3.1 million barrels. The API stated refinery utilization increased by 1.4% to 92.6%.

The Chicago cash market for CBOB and RBOB had a significant increase from Monday into Tuesday. Chicago CBOB went from $1.3590 to $1.5108, a $0.1518 increase. Chicago RBOB went from $1.5465 to $1.7508, a $0.2043 increase. The spike in the Chicago cash market could be supported from the shutdown of a coker unit at BP’s 135,000 bpd Toledo, Ohio refinery, but is estimated to be down only 10 days.

Contango opportunities continue to exist in the market. Contango is a situation where prices today are lower than those in future months, which gives a great opportunity for customers who have access to storage to lock in a profit. For example, October 2015 HO futures closed last night at $1.50/gal and October 2016 HO futures closed last night at $1.6570/gal, resulting in a $0.1570 difference.



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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