Hocus Pocus

By: Daryl Milliner / October 27, 2017

Halloween is right around the corner and magic is in the air. With the markets showing continued tightening and everyone on the edge of their seats awaiting the verdict from OPEC in regard to production cuts going beyond March of 2018, oil prices have reached the highest levels for this year. Prices in WTI and Brent crude have reached highs of $53.93 and $60.51 respectively. As shown in the crude YTD (year to date) chart below, crude prices began a descent in mid-April 2017 due to a rise in U.S. production before rallying over 25% from their mid-June lows to their most recent highs with signs of oil rebalancing and continued rhetoric by OPEC and, as of late, the Saudis and Russians declaring their support for extending a global deal to cut oil supplies for another nine months.

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Meanwhile, as we look forward towards November, temperatures are dropping around the nation and we must all prepare for the change of seasons that is upon us. The NOAA (National Oceanic and Atmospheric Administration) reported last week that La Niña is likely to stride through the U.S. resulting in wetter and cooler weather in some northern parts of the country. The southern states are expected to see drier and warmer conditions.

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Even though this could shape the winter outlook for us in the near term, Mother Nature can be unpredictable and we should all take proper steps to prepare for this upcoming season. A couple of things to keep in mind:  Where you find cooler and wetter weather, demand for heating oil increases which can have a direct impact on market and rack prices. To prepare for this upcoming weather, it is important to use winter additives in diesel products to avoid fuel icing.  This would be especially concerning in the northern parts of the country where La Niña could heighten conditions going into this winter season.


Categories: Daily Market Update


Daryl Milliner

Written by

Daryl Milliner

Exemplary customer support and relationship building are my focus. I strive to use all my knowledge and resources to ensure customers’ fuel operations are run seamlessly and efficiently. Keeping customers informed and satisfied is my highest priority.


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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