Lower Than Expected Draw Leads Market Down

By: Angela Agostinone / June 22, 2016

Yesterday, WTI crude closed down $0.52/bbl to $48.85, HO closed down $0.0107/gal to $1.5167 and RBOB finished up $0.0102/gal to $1.5929.  There was not much new news influencing the market yesterday; the stronger dollar and rumors that the Niger Delta Avengers and Nigerian government have agreed on a one-month ceasefire put some pressure on the market. 

The API statistics were released last night with much larger draws than expected. The API report showed a 5.2 million draw in crude inventories, 1.3 million barrels of the draw occurred in Cushing, OK.  It showed distillates had a draw of 1.7 million barrels and gasoline a draw of 1.5 million barrels.  Even with the very bullish APIs, there was not much reaction this morning in the market. 

The DOE statistics released today at 10:30 a.m. ET were very different than what the APIs reported.  The DOEs showed a draw in crude of only 917,000 gallons; however, for Cushing there was a 1.3 million barrel draw as reported in the APIs. Both refined products actually had a small build; distillates built 151,000 gallons and gasoline built 627,000 gallons. Since the release of the DOEs, prices have reversed across the board and are trading in the red.

Brexit continues to be the piece of news everyone is waiting for.  The vote is tomorrow and the question if Britain will stay or leave the European Union will be answered.  If the vote is to stay, it will most likely influence prices to be unchanged or a little higher. And if the vote is Britain will leave the European Union then it is expected to lower prices in the short term. 

 

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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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