9/2/2015 Market Update

By: Angela Agostinone / September 2, 2015

Tuesday ended the three day rally with crude closing down $3.79/bbl to $45.41, RBOB down $0.1035 to $1.3956 and HO down $0.1233 to $1.5779. Yesterday’s drop was surprising considering the approximately $0.30/gallon rally over the last three days. The API data showed a build of 7.8 million barrels in crude inventory, a build of 250,000 barrels in distillates and a draw of 1 million barrels in gasoline.

ConocoPhillips and Husky Energy stated they will start production at two new Canadian oil sands projects, which are expected to produce around 178,000 barrels of crude per day. A hedge fund manager, Pierre Andurand, told the Financial Times, “The market will remain oversupplied in 2016 and 2017. We need low prices for longer to rebalance the market. There are no quick fixes.”

The DOE statistics released today showed a build of 4.6 million barrels in crude inventories, however in Cushing there was a draw of 388,000 in crude. There was a build of only 115,000 barrels in distillates but in PADD 1 there was a 2.8 million barrel build in distillates, and for gasoline there was a draw of 271,000 barrels. The demand for crude oil is up 4% vs the five year average, and the demand for gasoline is up 3% vs the five year average. The increased demand will potentially help with the oversupply in crude and refined products. After a very volatile week, it will be interesting to see what happens next.

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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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