La Nina?

By: Angela Agostinone / October 11, 2017

Yesterday, WTI crude finished up $1.34/bbl to $50.92, HO closed up $0.0297/gal to $1.7649, and RBOB finished up $0.0321/gal to $1.5915.  Prices found support yesterday from the news that Saudi Arabia plans to cut November crude exports by 560,000 barrels/day in efforts to stabilize prices along with OPEC’s production cut until March 2018.  Also helping boost oil prices is the weaker U.S. dollar. 

The rally continued into today’s trading session as well.  As of 10 AM both HO and RBOB are up about $0.0100/gal. There are two pieces of bullish news that could be the driver for higher prices today.  First, a fire broke out at Delta’s Monroe Energy Refinery outside of Philadelphia.  As a result, the refinery will be down for an undetermined amount of time shutting down 185,000 barrels/day.  The cash markets should see a spike in prices as a result.  Second, rhetoric around the La Nina winter that is expected this year, despite the mild fall thus far.  If this holds true, the colder weather will help with heating oil demand. 

Due to the Columbus Day holiday this Monday, the weekly U.S. oil inventory statistics are delayed a day.  API statistics are due out later this afternoon and the DOE statistics will be out tomorrow at 11 a.m. ET. 

Some important resistance levels to keep an eye on:  $50.94 in WTI, $1.7888 in HO, and $1.5971 in RBOB. If the markets settle above these key 13 day moving averages respectively, it should be a signal for further strength in prices. 

10_10 settle.png


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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