U.S. VS. OPEC

By: Angela Agostinone / March 22, 2017

Yesterday, the expiring April WTI contract closed down $0.88 to $47.34/bbl, RBOB closed down $0.0061 to $1.6052/gal, and HO finished down $0.0108 to $1.5033/gal.  The market was weak across the board yesterday over concerns of the continuing increase in U.S. crude inventories. The weakness continued last night into this morning due to the API statistics released yesterday afternoon.  The API stats showed a build in crude inventories of 4.5 million barrels.  Cushing, OK contributed 2 million barrels of the overall build, as well as reaching over 92% capacity; a very bearish stat for WTI. Refined products both showed a draw; distillates 883,000 barrels and gasoline 4.9 million barrels.

The API statistics were followed up by very similar DOE statistics released today at 10:30 a.m. ET.  The DOEs showed an even slightly larger build in crude inventories of 4.9 million barrels, with a build of 1.4 million barrels coming from Cushing.  Distillate inventories drew by 1.9 million barrels, and gasoline drew by 2.8 million barrels.  These bearish crude statistics are driving the market down; the concern around U.S. production is outweighing any OPEC cuts or rhetoric around extending cuts.

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It is important to note the volatility in renewables this week. RIN values increased significantly, most likely attributed to the Renewable Fuel Standard (RFS) remaining unchanged for 2017.

As of 11:30 a.m. ET, WTI is off over $0.50/bbl, HO is off about $0.0120/gal, and RBOB is down around $0.01/gal.

 

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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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