It's All About the Grants

By: Angela Agostinone / June 8, 2016

Hip hop star Puff Daddy had a hit single called “It’s All About the Benjamins.” (hundred dollar bills). Right now, it’s all about Grants. The WTI crude settle on July 21, 2015 was $50.36 and that was the last time WTI closed above $50/bbl until yesterday.  Yesterday, crude closed up $0.0067/bbl to $50.36 (the exact same as July 21 settle), HO closed up $0.0384/gal to $1.5415, and RBOB closed down $0.0016/gal to $1.5871. The Chicago CBOB/RBOB cash market jumped over $0.20/gal in just one day due to planned and unplanned maintenance.

The futures market is up yet again this morning.  As of 11:45 a.m. ET, HO is up $0.0250/gal, RBOB is up $0.01/gal, and WTI is up $0.71/bbl. The strength in the market is a result of the following factors:

  1. Weakness in the U.S. Dollar.
  2. A refinery workers’ strike in France that will continue until at least Friday.
  3. Supply outages in Nigeria are still a big concern. The Niger Delta Avengers attacked another oil well this morning, right after Nigeria’s oil minister offered to start talks.  NDA’s impact has lowered production by 500,000 barrels per day.

Tuesday night the API statistics were released; half of the stats bullish and half bearish.  The bullish stats were that crude inventories drew 3.6 million barrels, versus a forecast of only 2.7 million barrels (Cushing drew by 1.3 million barrels).  The bearish numbers were from the refined products; gasoline built 760,000 barrels and distillates built 270,000 barrels. 

The DOE statistics released at 10:30 a.m. ET showed a draw in crude inventories of 3.2 million barrels with a draw in Cushing of 1.4 million barrels.  The builds in refined products were larger than what the API reported; gasoline built 1 million barrels and distillates 1.8 million barrels.

 

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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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