Pay Attention to the Details

By: Daniel Guttman / November 28, 2016

Early morning trading has been quite volatile today as we stand forty-eight hours away from the OPEC production meeting which is scheduled to take place on Wednesday in Vienna. Much of Friday’s loss has been gained back today as WTI crude is currently up more than 2%. Crude prices, followed by refined product prices, will react heavily to rumors and speculation over the next two days, and will then turn reactionary as an outcome is met. As mentioned last week, several times to be exact, prices will probably not react to fundamentals until this meeting is adjourned.

Hot topics circling the OPEC meeting:

  • Saudi Arabia declined to meet with Russia today. This meeting was to persuade Russia to cut production, but Saudi Arabia felt this to be a waste until a formal decision is made by OPEC.
  • Iraq still remains optimistic about OPEC and a deal being made.
  • Iran still wants to be exempt from production cuts. Their GDP relies very heavily upon the production of oil.
  • U.S. oil rig count climbed by 3 last week. According to Goldman Sachs, there has been a 50% increase in rigs here in the U.S. since May of this year.

OPEC.png

Regarding a production cut, many analyst are concerned about the details. An interesting article on Bloomberg.com talks about the 2008 financial crisis and how OPEC announced an output reduction to help curb the falling prices of crude oil, but failed to hammer out the details. Likewise, the majority of analysts today do believe a deal will be signed this Wednesday; however, they are worried that the specifics regarding how much each individual OPEC member has to cut production by, and what form of regulation will take place to make sure they are in compliance, will keep this deal from being a good one. Investor skepticism is at an all-time high, much like in 2008, and only time will tell if we are going to $55/bbl or $35/bbl.

At post time, WTI crude is up $1.10 to $47.16, RBOB is up $0.0248 and ULSD is up $0.0457

market-2.png


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.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us