As The World Turns

By: Peter Haralambakis / January 16, 2019

The oil market is mixed this morning as it continues to look for direction and weighs the same news items of the past few months.  Those issues continue to be OPEC cuts, U.S. / China trade dispute, concern over a global economic slowdown and increasing U.S. crude production. 

The Energy Information Administration said yesterday that U.S. crude output is expected to rise to record highs of 12 million barrels per day this year.  Also noted was that the U.S. will become a net crude exporter in late 2020.  Of course this report counteracts the support oil markets have seen recently due to cuts by OPEC and non-OPEC producer Russia.  As one analyst from Commerzbank was quoted in Reuters “U.S. oil production will continue to grow strongly this year and next year.  That means OPEC won’t have any other choice than extending the production cuts beyond mid-year.  Even deeper cuts could be necessary.”  In addition, yesterday’s news of the British parliament going against Prime Minister Theresa May’s deal to leave the European Union and China’s negative trade report earlier in the week from December followed by news of a possible Chinese stimulus plan point towards more questions and uncertainty.          

  

 

Late yesterday afternoon, the American Petroleum Institute released its weekly inventory numbers which showed a small draw in crude of .560 million barrels, a build of 5.99 million barrels and 3.21 million barrels in gas and distillate stocks respectively as well as a draw in stocks at Cushing of .796 million barrels.  This morning’s Energy Information Association fell somewhat in line showing crude inventories falling by 2.7 million barrels and builds of 7.5 million barrels for gas and 3.0 million barrels for distillates.

As of this writing RBOB is trading down $0.0100 / gallon while HO is up $0.0160

P.S. With the temperature heading towards a late January deep freeze, please contact us to discuss locking in forward pricing.  

 

https://www.cnbc.com/2019/01/16/oil-markets-economic-slowdown-and-opec-supply-cuts-in-focus.html

https://oilprice.com/Energy/Crude-Oil/Oil-Markets-Could-See-Deficit-In-2019.html

https://www.opisnet.com/

 

 

 


Categories: Trade


Peter Haralambakis

Written by

Peter Haralambakis

Peter Haralambakis is a Supply and Trading Business Development Manager at Guttman Energy with over 13 years of experience in commodities trading, analysis, and risk management in products ranging from Corn and Soybeans to Crude Oil Futures and Options to Financial and Physical Biofuels to Natural Gas and Natural Gas Liquids.


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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