Breaking News: Talking the Talk Fails, and Does Not Walk the Walk

By: Daniel Guttman / February 19, 2016

A little love for U.S. consumers on this beautiful Friday in the Northeast, as refined products and crude fall, continuing from late yesterday. As of 12:30 p.m. ET, diesel is down $.04, gas is down $.0150, and crude has made its way back into the mid 29s, falling $1.19. Once again, the global glut is outweighing talk from major oil producing powers(Iran, Saudi Arabia, Qatar, and non-OPEC member Russia). This is a carryover of the record breaking crude build last week continuing to put pressure on prices.

Reiterating the reports from yesterday, the DOE showed builds even though the APIs had previously forecasted a drop in inventories.. Reuters reports that cheap crude and healthy margins continue to incentivize refiners to push more products into storage as refiners and traders look to lock in profits by refining now and selling later on the contango. Keep in mind that a market in contango means future prices are expected to be higher than the current spot price.

World news to remember:

  • India's oil imports from Saudi Arabia and Iraq hit the highest in more than a decade last month as Opec's top producers gained at the expense of Latin American crudes, a validation of the Opec policy of maintaining output and fighting for market share. India's oil imports from Saudi Arabia and Iraq hit the highest in more than a decade last month as Opec's top producers gained at the expense of Latin American crudes, a validation of the Opec policy of maintaining output and fighting for market share.India’s oil imports from Saudi Arabia and Iraq hit the highest in more than a decade last month as OPEC’s top producers gained at the expense of Latin American crudes, a validation of the OPEC policy of maintaining output and fighting for market share.
  • Competitive prices and shorter shipping distances are giving the Middle East members of OPEC the upper hand in India, the world's third-largest crude oil importer.0218settle.png

Categories: Daily Market Update


Daniel Guttman

Written by

Daniel Guttman

With a background in wholesale and commercial sales as well as pipeline scheduling, Daniel is currently the Manager, Business Development in the Card Access Fuels department. He is tasked to find new and innovative solutions to increase sales opportunities for the sales team while managing and evaluating internal department processes. He assists with day to day personnel management, customer data analysis, as well as the daily Pacific Pride inventory and pricing direction.


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