Inexplicable Inventories

By: Daniel Guttman / August 17, 2017

Seven weeks of large crude draws, still, has not been enough to push the energy markets up. We saw almost a 9 million barrel drop in crude inventories reported yesterday from the DOE, but U.S production is pushing right back generating the highest amount of output in more than two years.  The market was down yesterday and is continuing to lose ground early this morning.  Yesterday, front month Heating Oil closed down $0.0252 to $1.5744/gallon, front month RBOB closed down $0.0157 to $1.5638/gallon, and WTI Crude closed down $0.77 to $46.78/bbl. 

A few important facts to take note of:

  • U.S. crude inventories have fallen below 2016 levels (see chart below).
  • U.S production is up by 13 percent since mid-2016.

8-17 blog pic.png

 Another interesting piece of data that made some headlines was China’s gasoline demand is expected to decline in the coming years. In previous monthly data, China has had over 2 million new car sales a month.  But, according to BMI Research, “Gasoline consumption growth in China is set to see a marked slowdown over the coming years, due to the macroeconomic headwinds, improving fuel economy, and competition from alternative fuels.”

The markets have rallied all the way back from the morning lows and is trading in the green for RBOB and WTI Crude. Distillates are still fighting to get out of the red.  The pop in the markets was mainly due to a Genscape (an energy industry information provider) report showing a hefty stockpile draw at the oil storage hub of Cushing, OK.  As of 12:10 p.m. ET, September Heating Oil is down $0.0024 to $1.5720/gal, September RBOB is up $0.0028 to $1.5666/gal, and WTI Crude is up $0.12 to $46.90/bbl. 

8-17 blog snip.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.


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