DOEs Trump the APIs

By: Daniel Guttman / June 23, 2016

For many, Tuesday’s API report came as a surprise when the U.S. crude inventories showed a draw of 5.2 million barrels. However, the DOEs released yesterday morning tamed that bullish statistic with much weaker draws across the board. On the API report, gasoline and diesel fell 1.5 and 1.7 million barrels, respectively. The DOEs actually had a small build on products, with gasoline building 627,000 gallons and diesel building 257,000 gallons. For crude, the DOEs did show a draw of 917,000 barrels, nowhere near the exaggerated levels of the APIs. It was the fifth consecutive week of a drop off in crude inventories.

The market started off strong yesterday morning, but flipped back with the release of the DOEs. Today, we are seeing the same reaction. This volatility today is due to the Brexit, which is the decision on whether Britain stayrs or leaves the European Union. Voters are heading to the polling stations today, and it is crunch time. According to a Daily Telegraph news report, “The future of Britain’s relationship with the European Union will not be known until at least 7 a.m. on Friday.” That’s 7:00 a.m. GMT. Most of us in the States should be sleeping at that time so be prepared to see a volatile market tomorrow.

The economy in Europe has struggled for years and the fear is if England leaves, it will place a constraint on oil demand throughout Europe. This is the biggest sociopolitical news story since the crude freeze, which turned out to be overrated.

Interesting news:

  • Domestic crude oil production continues to plummet, with last week dropping off by 39,000 bpd at 8.677 mbpd, the lowest since September 2014.
  • Saudi oil minister hints at return to balancing role once oil output surplus disappears.
  • 700 barrels of crude oil has spilled in southern California this morning, on the Ventura pipeline.
  • If Britain leaves the EU, there should be a short-term bearish sentiment in the market, but if it stays there shouldn’t be much of an impact on the market.622settle.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.


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