9/21/2015 Market Update

By: Daniel Guttman / September 21, 2015

If you were to ask OPEC what the future holds for crude, they would tell you how they now believe crude prices will rise to $80 by 2020 as supply falls, mostly in the United States. There is currently a major slump in drilling here in the U.S., the effects of which will have implications that reach far into 2016 and 2017. “The market’s not as oversupplied as we think it is,” David Pursell, a managing director at investment bank Tudor Pickering Holt & Co. in Houston, said in a phone interview conducted by Bloomberg. “The news out of OPEC is more bullish, U.S. production is falling and demand is great right now.”


Last week U.S. WTI crude fell and settled at $44.59/bbl, but is currently undergoing an early morning rally and even hit a pre-market opening high of $46.09. November WTI, which will become the front-month tomorrow, has picked up $1.00/bbl to $46.02. Heating oil and RBOB also fell last week, 3cts and 2cts/gal respectively, but are both trading up this morning +.0175cts at $1.5082 for Heat and +0.0455cts at $1.4017 for RBOB. In the cash market, Chicago RBOB continues to be the highest in the nation, and for our geographic region, gasoline comes at a premium, and premium prices themselves are sky high.

Late Saturday night a fire erupted at the Husky Energy refinery in Lima, Ohio. Within an hour the fire was contained and there were no injuries. Coke drums, which had been down for maintenance, triggered a fire when they were started back up. Although this was not a significant fire and will not have a huge impact on product supply, this may cause a price increase for gasoline in the Ohio markets. Something to keep an eye on over the next few days.


Categories: Daily Market Update

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.


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.


Contact Us