As Jim Morrison said, Break on Through (the Key Resistance Level)

By: Angela Agostinone / March 2, 2016

Yesterday, WTI crude closed up $0.65/bbl to $34.40, HO closed up $0.0058/gal to $1.0995, and RBOB finished down $0.0172/gal to $1.3035. The API data report released yesterday showed a large build in crude inventories of 9.9 million barrels.  Distillates had a 2.7 million barrel build, 1.8 million barrels of which is in Cushing, OK. Lastly, the APIs showed a draw of 2.2 million barrels in gasoline inventories. This morning WTI crude has been trading down, but both refined products have been mixed. They started trading down after the bearish API reports but currently both are up between $0.0050 and $0.0150. The strength could be a result of Russian oil output being unchanged in February from January, which could be viewed as an indication the country is supporting the oil production freeze.

These gains suggest strength in the short term, but fundamentally the market is still very bearish. For prices to continue to increase, contracts need to go through key resistance levels:

 WTI: 34.82

HO: 1.1181, then 1.1252 (Dec 2008 low)

RBOB: 1.3377, then 1.3415

 

The DOE statistics, released this morning at 10:30 a.m. ET confirmed the API numbers:

Crude +10.4 million barrels

PADD 1: +931,000 barrels, PADD 2: -1.9 million barrels, PADD 3: +8.8 million barrels

These are the highest inventory levels since 2004.

 Distillates: +2.9 million barrels

PADD 1: +262,000 barrels, PADD 2: +1.3 million barrels, PADD 3: +1.2 million barrels

 Gasoline: -1.5 million barrels

PADD 1: -1.4 million barrels, PADD 2: -33,000 barrels, PADD 3: +987,000 barrels

 When the stats were first released the market came off, but currently both refined products are up over two cents and WTI is now up 44 cents and broke through the $34.82 resistance level.

3_1_settle


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.


Comments

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.

Categories

Contact Us