Let's Get Back to Bearish Business

By: Daniel Guttman / April 7, 2016

Yesterday, EIA data showed an unexpectedly large 4.9 million bbl draw in U.S. crude stockpiles, the largest decline since January 1. This was fundamentally driven by a substantial draw in the Gulf Coast due to refinery utilization reaching 95% of capacity, as well as a drop in imports. The large draw contributed to the market spiking to its largest one-day rally in three weeks, with HO settling up +0.0657 to $1.1403 and RBOB settling up +0.0169 to 1.3947. WTI crude futures settled up $1.86/bbl, to $37.75/bbl.

 

In refined products, gas and distillates showed a build of 1.43 million bbls and 1.79 million bbls, despite PADD 1 showing a weather/demand-influenced draw of 3 million bbls on HO. The market is currently trading down about two cents on both HO and RBOB.

 

A small spill on Saturday near Freeman, SD caused TransCanada’s Keystone crude pipeline to delay operations until Tuesday of next week. Previous estimates indicated the pipeline would be operational by the end of this week. The pipeline exports about a fifth of Canadian crude to the U.S., and the shutdown has caused a back-up in crude supplies in Canada. This is a major interruption to crude oil shipments south from Alberta to Cushing.

 

So far in April, Iraqi crude oil exports from its southern ports have averaged 3.494mpbd, an increase of about .208mbpd since last month. Iraq plans to lower the oil price forecast in its 2016 budget to about $32 a barrel from $45.

 

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Categories: Daily Market Update


Daniel Guttman

Written by

Daniel Guttman

With a background in wholesale and commercial sales as well as pipeline scheduling, Daniel is currently the Manager, Business Development in the Card Access Fuels department. He is tasked to find new and innovative solutions to increase sales opportunities for the sales team while managing and evaluating internal department processes. He assists with day to day personnel management, customer data analysis, as well as the daily Pacific Pride inventory and pricing direction.


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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