Many Suspect Russia's Bluff

By: Lindsay Farrell / January 29, 2016

Yesterday there were talks of a production cut by OPEC and Russia, causing an early, positive market reaction.  Russian Energy Minister Alexander Novak made comments that Saudi Arabia was proposing production cuts of up to 5%, causing oil prices to rise about 5%.  However, market analysts dismissed the credibility of the cut with some calling it “false hope” and some media sources reported that there were no plans for implementation of these cuts, causing the market to retreat.  Ultimately, both WTI and Brent closed way below the day’s highs. OPEC has stated that no date has been set for its next meeting with non-OPEC producers. 

In other news, the U.S. economy expanded at a slower pace in the fourth quarter.  U.S. Commerce Department figures showed that gross domestic profit rose at a 0.7% annual rate and ended at a 2% gain.  Growth has slowed as a result of continued low oil prices continued the negative impact of a stronger dollar on exports and slowing markets abroad.  The first quarter of 2016 is expected to show stronger numbers.

Yesterday, WTI crude closed up $1.02/bbl to $33.22, gasoline closed up $0.0333/gal to $1.0790, and HO finished up $0.057/gal to $1.0309.   As of 11:15 am EST, WTI is up $0.16 to $33.38, gasoline is up $0.0083 to $1.1086 and diesel is up $0.0167 to $1.0614

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Categories: Daily Market Update


Lindsay Farrell

Written by

Lindsay Farrell

As Manager of Quality Assurance and Regulatory Compliance, Lindsay Farrell is responsible for fuel operability across the company’s terminals and customer sites, as well as keeping up-to-date with the latest regulations and best practices within the industry.


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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