Oil Up on Fed Announcement

By: Angela Agostinone / March 30, 2016

Yesterday the market finished down across the board; crude closed down $1.11/bbl to $38.28, RBOB closed down $0.0142/gal to $1.4538, and HO finished down $0.0246/gal to $1.1555. After yesterday’s settle, the API statistics were reported, showing a smaller than expected build in crude of 2.6 million barrels, however for the second week in a row Cushing had a draw in inventories. Distillates had a small draw of 95,000 barrels and gasoline had a 1.9 million barrel draw.  The draw in gasoline and Cushing is likely to be contributing to the gain in the market this morning. 

Another piece of news that is impacting the market today is Janet Yellen’s announcement last night. Yellen stated that there would not be an interest rate change because of rising U.S. inflation and uncertainty in global economics. The Fed is cautiously attempting to avoid any negative impact on the U.S. economy.  Since the Fed’s announcement the dollar has come off, resulting in the market rising today.

The DOE statistics report released today at 10:30 a.m. ET showed a build in crude inventories of 2.3 million barrels, while Cushing had a draw of 272,000 barrels.  Both refined products had larger draws than what the API reported; distillates had a 1.1 million barrel draw and gasoline had a 2.5 million barrel draw.

As of 11 a.m. ET, the market is up over three cents on HO, about fifty points on RBOB, and over a dollar on WTI crude.  The most important contract to watch is May RBOB; it needs to settle over 1.4777 for the bullish trend to continue.






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.

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