Another Ruby Tuesday? Futures Prices in the Red Again

By: Daniel Guttman / December 22, 2015

  1. Yesterday saw further declines in the refined products in the front months. January RBOB futures settled down 6.52 cents and the January HO contracts settled down 67 points. Yesterday was also the last trading day for Jan WTI contracts. Trading was therefore very light in the Jan contract, but the Feb contract settled at $35.81 per barrel.
  1. Morgan Stanley published an article about the 2016 outlook for the oil market. It indicated 2016 will most likely see a continued downward pricing trend in all sectors of the oil market, but especially in crude due to the fact that production shows no sign of slowing down. Global production, according to Morgan Stanley, will substantially increase due to Iranian oil exports, increased OPEC production, and the potential peace in Libya (although unlikely). The article goes on to say that demand is also likely to slow down from its 2015 pace.  OPIS also echoed Morgan Stanley’s sentiment: “Fundamentally, there's not much to indicate a reversal of fortunes anytime in the near future, leaving market watchers wondering where the bottom is.”
  1. Currently the market is down for RBOB, HO and WTI. Although this is a holiday week, the API and EIA data will be released on their normal schedules. It will be interesting to see if the perceived extra holiday demand will substantially change national inventory levels.

 

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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.


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