Crude's Freefall Continues.

By: Daniel Guttman / December 14, 2015

During the financial crisis of 2008-2009, WTI set the benchmark at $33.87/bbl of oil. We are lingering dangerously close to that level as we have witnessed U.S. WTI tick to a multi-year low of $34.53 in early morning trading. HO and RBOB follow suit and can be seen trading down $.0284 and down $.0439 respectively, continuing the downhill trend from last week. Both WTI and Brent have fallen every day since Dec. 4th when OPEC abandoned its output ceiling.

  • Investors are anxiously awaiting the Fed’s decision regarding interest rates later this week.
  • Baker Hughes data released Friday showed another decline in the number of U.S. oil rigs last week.
  • Abnormally high temperatures hurt not only winter jacket sales, but also weaken diesel demand…significantly.
  • Iran has already secured crude customers in anticipation of its sanctions being lifted by the first week of January.
  • Front month January HO on the NYMEX has traded below the price of RBOB for the majority of the month.  
  • According to Bloomberg, while WTI trades around $35/bbl, a mix of Mexican crudes is down around $28/bbl, Iraqi around $25/bbl and western Canadian producers are even selling for less than $22 a barrel.
    • Canadian oil producers are at the pivotal point where it may become difficult to cover their operational costs.



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.


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