How About a Little Noise

By: Daniel Guttman / February 1, 2016

Last week’s four day rally seems to be long-lost history as poor Chinese economic data released over the weekend is seen pulling the market into the red this morning. March’s WTI index is currently down $1.57 at $32.05/bbl, and both heat and RBOB are shedding some of last week’s gains, down $.0412 and $0.0306 respectively.

Last month, the Chinese Purchasing Managers’ Index, PMI—which measures the performance of the manufacturing sector of the economy based upon a survey of 430 industrial companies—fell to a three-year low, signaling contraction for the sixth straight month. However, China’s oil demand continues to be on the upswing, making this morning’s market movement seem more like reactionary noise than actual effect.

While on the subject of noise, last week’s talk about Russia and OPEC possibly cooperating to address the global supply surplus was just that—noise. That bullish sentiment, which rejuvenated the market into a late-week rally, has since regressed. According to Bloomberg, Russian Energy Minister Alexander Novak was quoted on Friday saying that no such meeting with planned with OPEC members.

Locally, warm weather granted us a spring-like weekend. The only remains of Jonas are piles of dirty snow and salt in parking lots and on the sides of highways. However, winter may not be over yet. If Punxsutawney Phil sees his shadow tomorrow, we could be in for another 6 weeks of winter. With the market down and more winter possible, now would be a great time to consider fixed prices on diesel and heating oil!


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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