Pressure On Prices Continues

By: Angela Agostinone / August 31, 2016

Yesterday, WTI crude closed down $0.63 to $46.35/bbl, HO closed down $0.0151 to $1.4711/gal and RBOB finished down $0.0186 to $1.4483/gal.  The September HO and RBOB futures contract expires today and tomorrow the prompt trading month will be October.   

The market has been down the past few days since Janet Yellen’s speech; expectations for a rate hike have strengthened the U.S. dollar, thus putting pressure on oil prices. Also adding pressure to prices are the seasonal switch to higher and less expensive RVP gasoline, the tropical disturbance is no longer a threat to refineries in the gulf coast, and lastly, the API statistics that were released last night. The APIs showed a build in crude inventories of 924,000 barrels, and Cushing had a draw of 600,000 barrels. Gasoline had a draw of 1.6 million barrels and distillates had a surprise build of 3 million barrels. 

The DOE statistics released this morning were mixed bearish/bullish.  The DOE reported a build in crude of 2.3 million barrels, but a draw of 1.0 million barrels in Cushing.  Gasoline did have a draw but for only 691,000 barrels, and distillates had a smaller build than the API report at 1.5 million barrels. Since the release of the DOEs, the market has come off significantly.  WTI is off $1.42 to $44.93, Oct RBOB is off $0.0352 to $1.3393, and OCT HO is off $0.0529 to $1.4318 as of 12:15 p.m. ET. Below are graphs of the inventory levels for crude, gasoline and distillates, showing that fundamentally nothing has changed and we are still are record high levels. 

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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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