As Builds Continue, Just Grin and Bear It

By: Angela Agostinone / November 11, 2015

Yesterday, crude closed up $0.34/bbl to $44.21, RBOB closed down $0.0087/gal to $1.3618, and HO finished up $0.0091/gal to $1.4865. Currently, refined products are trading down $0.0350/gal with crude off over $1.00/bbl.

API data released last night showed a build in crude inventories of 6.3 million barrels, including a 2.5 million barrel build at Cushing, OK.  Cushing is fast approaching “full” status which will be bearish for prices. There was a draw in gasoline of 3.2 million barrels, and a draw in distillates of 520,000 barrels.  DOE statistics will be released Thursday due to the Veteran’s Day holiday today.  If the DOE stats match the API data, the bearish market can be expected to continue. The product draws are not enough to offset the crude build.

A recent report from the IEA shows oil prices are set for a slow recovery.  The IEA forecasts oil prices to rebalance at $80/bbl in 2020.  The forecast for demand is that 900,000 bpd will be added in 2020.

U.S. imports of crude from Iraq will be extremely high in the month of November.  Iraq is one of the least expensive places in the world to extract crude. With that being said, Iraq sells its crude at large discounts to global benchmarks.  With crude being discounted, U.S. refiners are more likely to buy it.  Currently, there are vessels carrying 19 million barrels from Iraq’s Basra Oil Terminal headed to terminals in the Gulf of Mexico and across the U.S.

iraq


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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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