Is There or Isn't There? Conflicting Reports on Biofuels Exec Order

By: Angela Agostinone / March 1, 2017

Yesterday, WTI crude closed down $0.04 to $54.01/bbl, the April HO contract closed down $0.0084 to $1.6399/gal, and the April RBOB contract finished down $0.0123 to $1.7294/gal.  March HO and RBOB contracts expired yesterday, and it is important to note the $0.2174 spread between the March ($1.5120) and April ($1.7294) RBOB settles because of the switch to the lower summer RVP grade which is more expensive.

The market was off across the board yesterday due to the statement from the Renewable Fuels Association (RFA) saying the obligation for blending biofuels will be moved from refiners to further down the supply chain at the rack level. This news caused RIN values to drop almost 25%.  White House spokeswoman Kelly Love responded, “There is no ethanol executive order in the works.” Oil prices bounced before the market settled, in response to Love’s comment.  Yesterday’s blog post covered more on this topic; if interested please click the link to read. http://blog.guttmanenergy.com/blend.-rins.-repeat-1.

After all this news during the day, the API statistics were released last night.  The APIs showed crude had a build of 2.5 million barrels, of which 544,000 barrels was in Cushing, OK.  Gasoline inventories built 1.8 million barrels, and distillate drew 3.7 million barrels.  The market this morning is reflecting those statistics, with HO prices up and RBOB prices down.  Another important piece of news today is that OPEC continued to cut production in February, and is now at 94% compliance. 

Lastly, the DOE statistics were released today at 10:30 a.m. ET. The DOEs showed crude inventories had a build of 1.5 million barrels (495,000 barrels in Cushing, OK).  Both refined products showed a draw in inventories: gasoline 546,000 barrels and distillates 925,000 barrels. As of 11:30 a.m. ET, WTI crude is up $0.05/bbl, HO is flat, and RBOB is down $0.0280.

 

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Categories: Daily Market Update


Angela Agostinone

Written by

Angela Agostinone

Angela manages daily price changes from suppliers to ensure Guttman Energy customers are getting the most current and competitive rack prices. She is also responsible for relaying supplier product allocations to Guttman Energy's sales and logistics team, as well as analyzing specific benchmarks such as OPIS, Platts, and Argus to ensure each customer is getting the greatest value from their contracted fuel purchases.


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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