Are We Headed Towards Another “R” Word?

By: Lindsay Farrell / February 5, 2016

The Labor Department released numbers this morning showing that U.S. employment gains were slower than expected.  However, the numbers are promising in showing that we are still seeing the labor market recovery.  The unemployment rate fell to 4.9%, the lowest it’s been since 2008. The rate was expected to be slightly higher at 5.0%, the number we saw in December.  Nonfarm payrolls also came in lower than the expected 188,000 at 151,000 jobs last month – both lower than the 292,000 reported for December.

The positive jobs report came after some less encouraging news regarding economic conditions, causing increased talk of a potential recession in the future:

  • The Fed released a statement on Tuesday stating that financial conditions are considerably tighter than they were a month ago and warning that the recent status of the financial market could change the growth outlook for the U.S. economy.
  • The Bank of England announced yesterday that it is not raising interest rates for the 83rd consecutive time and also cut its growth rate forecast by 0.3%.
  • The EU Commission cut its growth forecast for the Eurozone. Further, if Britain exits the EU, it could cost the EU an estimated 4% of GDP.
  • Moody’s reported that the number of U.S. companies at risk of debt default is nearing the number last seen during the 2009 financial crisis.

Some see the glass as half empty while others see it as half full. Only time will tell which direction we are headed. 

Yesterday, WTI crude closed down $0.56/bbl to $31.72, HO closed up $0.0019/gal to $1.0805, and RBOB finished up $0.0147/gal to $1.0284. Markets are trading a bit lower this morning and afternoon.  

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Categories: Daily Market Update


Lindsay Farrell

Written by

Lindsay Farrell

As Manager of Quality Assurance and Regulatory Compliance, Lindsay Farrell is responsible for fuel operability across the company’s terminals and customer sites, as well as keeping up-to-date with the latest regulations and best practices within the industry.


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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