Good Gyrations

By: Peter Haralambakis / May 6, 2016

Yesterday’s oil market seemed to be a good snapshot of the market gyrations over the last few months.  From the time the market opened at 9:00 a.m. ET until it closed at 2:30 there was a steady decline.  The Heating Oil market declined from an intraday high of $1.3800 to eventually settle at $1.3287.  The RBOB market had a similar path after hitting a high of $1.5336 to settle at $1.4914.

Since February of this year we have seen the markets rally behind OPEC meeting rhetoric, a decline in U.S. production, cuts in output from Nigeria and Columbia and increased gasoline demand.  That rally is being tempered however by the global crude glut as well as the anticipated gasoline glut after the summer driving season.  When those factors are coupled with Iran’s new supply, Saudi Arabia’s market share strategy and China’s all-time-high exports, the bears have the upper hand right now.  As one analyst in London stated, “Oil fundamentals are improving but the market is still apprehensive.  Only when refiners start complaining about the lack of supply will we see a sustainable recovery.”  A second analyst said that “oil is ripe for a consolidation or correction into the mid-to-low $30’s.”        

Today after opening in the red, the market is rallying, primarily based on the wildfire in Fort McMurray, Canada and rising political tension in Libya.  As of the time of this writing heat and RBOB are both up approximately a penny.    





Categories: Daily Market Update

Peter Haralambakis

Written by

Peter Haralambakis

Peter Haralambakis is a Supply and Trading Business Development Manager at Guttman Energy with over 13 years of experience in commodities trading, analysis, and risk management in products ranging from Corn and Soybeans to Crude Oil Futures and Options to Financial and Physical Biofuels to Natural Gas and Natural Gas Liquids.

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.


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.


Contact Us