Downtrend Continues

By: Angela Agostinone / April 26, 2017

Yesterday the market was off all day and then had a small rally at close.  June WTI closed up $0.33 to $49.56/bbl, May HO closed up $0.0025 to $1.5452/gal, and May RBOB finished up $0.0016 to $1.6230/gal.  The market was off last night and continues to trade down this morning due to the bearish API statistics released last night.  The API stats showed a build in crude inventories of 897,000 barrels, a surprising statistic because expectations were a 1.7 million barrel draw.  The gasoline build of 4.4 million barrels was an even bigger surprise, since a 1 million barrel draw was expected.  Distillates drew 36,000 barrels, which was a bit smaller than what was expected.    

The DOE statistics released at 10:30 a.m. ET differed slightly from the APIs.  The DOEs showed a draw of 3.6 million barrels in crude inventories. The decline is mostly made up of a 1.2 million draw from Cushing, 1.9 million barrel draw from PADD II and a 1.2 million barrel draw in PADD III.  Refined products both showed a substantial build.  Distillate inventories built 2.7 million barrels and gasoline inventories built 3.4 million barrels.  The market reacted as soon as the stats were released and initially oil prices started to come back some, probably driven by the reported draw in crude.  As of 11:10 a.m. ET, WTI is now trading positive $0.23/bbl, HO is down about $0.01/gal, and RBOB is still down $0.0250/gal.

The concern is that the supply glut continues even after the OPEC output cuts since the beginning of the year. The next piece of news is whether or not OPEC agrees to continue cuts into the second half of the year. The downward trend continues for refined products; market closes below the following support levels could mean even further weakness: WTI 48.91, HO 1.5336, and RBOB 1.6007.

 

4_25 settle.png


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.


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