Bears vs. Bulls

By: Angela Agostinone / March 15, 2017

Yesterday, WTI closed down $0.68 to $47.72/bbl, HO closed down $0.0087 to $1.4919/gal, and RBOB finished up $0.0028 to $1.5835/gal.  The market was relatively flat yesterday ahead of the Federal Reserve announcement and DOE statistics due out today. However, after the settle yesterday the market was up two cents because of the bullish API statistics.  The API statistics showed an unexpected draw in crude inventories of 531,000 barrels. Both refined products showed a draw of about 4 million barrels. The only bearish stat was the 2.1 million barrel build in Cushing, OK.

The DOE statistics just about mirrored the APIs this week.  The DOE stats showed a 237,000 barrel draw in crude inventories. Distillate had a draw of 4.2 million barrels and gasoline had a slight smaller draw of 3.1 million barrels. Cushing did have the 2.1 million barrel build.

The market continues to trade upward across the board this morning, influenced by the APIs and DOEs, despite numerous pieces of bearish news. The first is the ongoing talks surrounding global oversupply. The OPEC/non-OPEC agreement should be helping but the assessment for the month of February shows Saudi Arabia had an 180,000 barrel/day increase and that Russia is only at 40% compliance by cutting 119,000 barrels/day instead of the agreed upon 300,000 barrels/day.  Also bearish is the continuing increase in U.S. drilling rigs; even if OPEC was at 100% compliance, increased U.S. production would be offsetting that cut.  The last piece of bearish news is the Federal Reserve announcement this afternoon at 2 p.m. ET regarding an interest rate increase. If there is an increase, it will strengthen the U.S. dollar, which is bearish for oil prices. 

As of 11:15 a.m. ET, WTI is up $0.90/bbl, HO is up almost $0.02/gal, and RBOB is flat.

 

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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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