OPEC Round Two

By: Angela Agostinone / June 1, 2016

The June RBOB and HO contract expired yesterday and the prompt month is now July.  July settled as follows: WTI finished down $0.23/bbl to $49.10, HO finished down $0.0044/gal to $1.4971, and RBOB closed down $0.0244/gal to $1.6134. 

Caution surrounding tomorrow’s OPEC meeting in Vienna is driving the market down this morning.  OPEC is meeting again in an effort to come to an agreement on oil output.  An OPEC source stated that Iran is signaling they support OPEC’s effort to stabilize oil prices but will not commit to participate.  The last OPEC meeting in December 2015 was not successful and resulted in a price crash in January.  WTI hit a low of $27/bbl in January and slowly has been recovering.  The recovery in prices to around $50/bbl was due to a decline in U.S. shale production, fires in Canadian oil sands, and production issues in Nigeria and Venezuela.

The market rallied $1/bbl on WTI this morning on a headline that OPEC is likely to consider a new output ceiling at the June 2nd meeting. This is a very bullish move if done and enforced.

The key events that will influence the market for the rest of the week:

  1. The API statistics that are released today at 4:30 p.m. ET.
  2. The DOE statistics that will be out Thursday morning.
  3. OPEC’s decision tomorrow.

Note- the API and DOE statistics are delayed one day due to the Memorial Day holiday.

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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.


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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