Market Fast Points

By: Daniel Guttman / November 19, 2015

  1. EIA released its weekly statistics yesterday. The report showed crude built 252,000 barrels and Cushing had a 1.3 million barrel build. In the refined products there was a draw of 791,000 million barrels of distillates, and a build of 1 million barrels of gasoline. The small crude build was most likely due to inventory already in place in the Gulf Coast and increased refinery runs after fall turnaround. The data release created an initial decrease in futures contract pricing, but when the day came to a close everything was in the green.  The front month WTI contract finished up eight cents per barrel at $40.75, HO finished up $0.0123 cents per gallons at $1.3804, and RBOB finished up $0.0281 cents per gallon at $1.2661.

 

  1. The Chicago cash market have been dropping quickly as of late, especially for gasoline. The tightness in the Chicago cash market has been due to pipeline and supply issues over the last months but most of these issues appear to have worked themselves out and turnaround season has ended. There has also been a lot of product shipped from the Gulf Coast to Chicago via the Explorer pipeline; this extra length has also created pressure in the market. Chicago diesel has started to feel the same pressures as gasoline, as the cash differentials fell by almost a nickel and continue to fall today. New York’s diesel cash differentials fell by $0.0075 yesterday and gasoline remained flat.

 

  1. The word “oversupply” has been written many times in this blog and today is no different. As the global supply and demand picture becomes clearer, experts have been drawing comparisons to the market conditions during 2008-2009. During 2008-2009 the difference between global supply and demand averaged around 500,000 extra barrels of supply per quarter, according to the EIA. The last two quarters of 2015 have averaged 1.4 million excess barrels of supply. As the chasm between supply and demand widens to levels unseen in recent history, it will be interesting to see if OPEC’s commitment to supply the world market changes.

 

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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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