Hope everyone had a fun and safe holiday yesterday!
Due to the Independence Day holiday, the API and DOE statistics for the week ending June 30th are delayed a day; the APIs will be released tonight and the DOE statistics will be released tomorrow at 11 a.m. ET.
Looking back at Monday, WTI crude closed up $1.03/bbl to $47.07, RBOB closed up $0.0211/gal to $1.5348, and HO finished up $0.0297/gal to $1.5128. The rally recently has been technically driven, because fundamentally the market is still very bearish.
Today, the market is off across the board; as of 10:15 a.m. ET HO is down about $.0250/gal and RBOB is off almost $0.03/gal. This weakness this morning is a result of OPEC’s production and export numbers for June. It was reported that in June OPEC’s production increased by 260,000 barrels per day to 32.55 million barrels per day. OPEC’s crude exports also increased last month by 450,000 barrels per day to 25.92 million barrels per day. The higher U.S. dollar is also adding to the weakness in the market. The U.S. dollar is higher ahead of the Fed releasing its minutes from last week’s meeting at 2 p.m. today. The minutes from the meeting could reveal what is to come for the second half of 2017 and if there will be anymore hikes in interest rates. The last piece of news supporting the weakness in oil prices today is the comments from Russia. Bloomberg reported that Russia opposes any further production cuts for the OPEC/non-OPEC deal.