IT'S ALL ABOUT OPEC AND STATS

By: Matt Rosenberg / October 13, 2016

The oil market settled lower yesterday for the second consecutive day after closing Monday at $51.35 per barrel which was the highest level since July 2015.  Heating oil and RBOB also finished down $.0205 and .0210 per barrel respectively.  The consensus seems to be that the negative pressure of the last two days is again supply glut driven and due to the lack of confidence that traders and analysts have that an agreement on production between OPEC and non-OPEC producers will come to fruition.  OPEC members agreed last month to reduce their overall production to a figure between 32.5 and 33 million barrels per day with details to be discussed at OPEC’s next meeting in November.  According to the International Energy Agency, OPEC produced a record of 33.64 million barrels per day in September (while demand declined) with much of the overproduction attributed to Saudi Arabia and Iran ahead of the OPEC meeting.  Even if an agreement is reached there is great speculation on the overall impact due to the current massive supply overhang.  Goldman Sachs told clients earlier this week that despite a production cut becoming a “greater possibility”, markets were unlikely to rebalance in 2017.  Rumors and rhetoric will continue to grab headlines as we get closer to the meeting scheduled for November 30th in Vienna, Austria. 

 

OPEC_Bloomberg_Graph.png

 

The market today is being driven by both the API data and EIA stats released earlier today.  Late yesterday afternoon, supply estimates from the American Petroleum Institute showed a larger than expected build of 2.7 million barrels in U.S. crude oil stocks.  The API’s also showed a draw of 1.4 million barrels in Cushing, OK which softened some of the bearish impact.  Gas builds were 688,000 barrels and distillates drew 4.5 million barrels which was larger than expected.  These numbers have been reinforced this morning after the EIA government data reported a build of 4.9 million barrels of crude.  This is the first rise in U.S. crude stockpiles in six weeks.  While the data differed in gas, the distillate reports were in line with each other with both reporting draws in product.  As of 12:00 PM heating oil and RBOB are both trading higher on the NYMEX.    

 

10-12.png

 

 

 

 

               


Matt Rosenberg

Written by

Matt Rosenberg

As a key accounts manager, Matt helps large customers make mission-critical decisions by providing timely advice regarding market conditions.


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