Market Unexcited By Japanese Stimulus Package

By: Daniel Guttman / August 2, 2016

The market is continuing on the down-trend this morning, trading at a penny loss on refined products. Over the past two weeks, we’ve seen HO drop off by over 12.5 cents and RBOB fall by over 7 cents on supply glut concerns. Yesterday, HO settled down $0.0496 to $1.2579 and RBOB lost $0.0158 to $1.3036. September WTI Crude fell $1.54 to $40.06, falling below $40/bbl for the first time in three months. Despite a significant loss on the NYMEX, the Chicago cash market finished with gains on all products due to a multitude of refinery issues.

 

Refinery problems in Chicago include production issues at BP’s 430,000 bpd Whiting, Ind. plant, an unplanned repair at Marathon’s 225,000 bpd Robinson, Ill. refinery, planned maintenance at Phillips 66's Wood River, Ill. plant, and numerous issues at BP's Toledo, Ohio, facility, Husky's Lima, Ohio, refinery, and at CITGO’s Lemont, Ill. refinery. Spot prices for gasoline and diesel in Chicago-influenced markets (Ohio and west) are likely to drive upward.

 

The market is losing interest in the $274 billion Japanese stimulus package approved yesterday by Prime Minister Shinzo Abe. As Japan’s largest stimulus program since the 2008 recession, the package seems substantial, however a deeper look shows the numbers to be less exciting. Low interest loans from government and state-owned companies will make up 75% of the package, leaving only $74.4 billion in new spending over the next couple of years.

 

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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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