Bearish Stats Cool OPEC-fueled Rally

By: Angela Agostinone / December 14, 2016

Yesterday, WTI crude closed up $0.15 to $52.98/bbl, HO closed up $0.0030 to $1.6747/gal and RBOB finished up $0.0077 to $1.5507/gal. 

The market is off today due to the bearish API statistics released last night, as well as the anticipated announcement from the Fed later today. The Federal Reserve will announce its decision today at 2:00 p.m. ET, regarding whether or not it will raise rates.  The expectation is an increase in interest rates by 25 points. This is putting pressure on the market because an increase in rates means a boost in the U.S. dollar, which typically results in weaker oil prices.  The API statistics are as follows:

Crude: +4.7 million barrels; Cushing: +632,000 barrels

Gasoline: +3.9 million barrels

Distillates: +230,000 barrels

The market switched direction at 10:30 a.m. ET when the DOE statistics were released.  The DOE statistics were completely different than the API report.  There is usually some discrepancy between the two, but today was greater than normal. The DOE statistics are as follows:

Crude: -2.6 million barrels; Cushing: +1.2 million barrels

Gasoline: +497,000 barrels

Distillates: -762,000 barrels

 

Both refined products are trading up around a penny as of 11 a.m. ET. The charts below show how the market reacted to the APIs last night (drop in price last night into this morning) and the jump in prices once the DOE statistics came out.

rbob jump.png

ho jump.png

 

12_13 settle.png


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.


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