As most sources will tell you, October saw a mixed performance on all spectrums. WTI gained 3.33% and Brent gained 2.46%, while heating oil on the NYMEX fell 0.87% and RBOB fell 1.89%. U.S. rig counts fell from 614 during the last week in September to 578 last week, while crude oil production (9.1 mbpd) was up in October versus September. Additionally, while the U.S. dollar strengthened during the month, showing signs of a bearish market, bullish geopolitical events took place in the Middle East. And one last note, no agreement was made between OPEC and non-OPEC producers to balance the market.
As for today, it looks like we are going to kick off November on a downtrend. WTI crude is currently trading down $.026 at $46.33, and heating oil and RBOB are both down ever-so-slightly of $.0048 and $.0066 respectively. The three cash markets, NY, Chicago, and Gulf Coast, all show a strengthening on ULSD of roughly two cents across the board. The biggest eye-catcher was an increase on the Chicago CBOB and RBOB, which were up six and eight cents respectively, primarily due to ExxonMobil’s unplanned issues at its refinery in Joilet, Ill.