Keystone Pipeline Leak Sparks Rally

By: Mike Dombroski / November 17, 2017

TransCanada’s controversial Keystone pipeline leaked close to 5,000 barrels of oil yesterday on the North and South Dakota border. This prompted the shutdown of the pipeline yesterday morning which ships Canadian crude oil down south to the U.S. Gulf Coast. This is the primary driver for WTI’s rally today, up $1.26 to $56.40/barrel. The market has also traded lower throughout the week so we are due for a technical bounce heading into the weekend before the Thanksgiving holiday. RBOB has been the laggard as it has fallen from $1.8124 last Friday, to currently trading at $1.7471/gallon. ULSD is higher on the day by $0.0345 to $1.9366/gallon.

Keystone Pipeline.jpg

Trading volume does appear to be a little light today, perhaps adding to why WTI is being squeezed up so much. We’ve failed to break through the $55 support this week, and now it may be trying to retest $57/barrel. Next week’s trading volume will be extremely light with the holiday, but traders will be positioning themselves for the November 30th OPEC meeting as it appears Russia is still unsure if it wants to extend the production cut for all of 2018.

Tesla unveiled its Class 8 electric semi-truck to the world last night. Although not too many details were released as far as the cost, how it will be serviced and charged, Tesla did disclose the batteries had a 500 mile radius. These trucks are suppose to be more economical and have better performance than traditional diesel trucks, but there is still a long way for them to be a game-changer on a grand scale to replace the status quo of diesel trucks.

11-16 market.jpg

Mike Dombroski

Written by

Mike Dombroski

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.


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.


Contact Us