Rallying to Higher Ground

By: Angela Agostinone / April 27, 2016

Oil prices hit the new high of 2016 yesterday; WTI closed up $1.40/bbl to $44.04, HO closed up $0.0422/gal to $1.3325, and RBOB finished up $0.0529/gal to $1.5660. Prices continue to rise today with HO trading up over three cents, and RBOB is up almost two cents.  Supporting the rally are the weaker U.S. dollar and the API statistics that were released last night.  The API reported a draw in crude inventories of 1.1 million barrels vs. expectations of a 2.4 million barrel build.  Both refined products drew as well, with gasoline down 400,000 barrels and distillates down 1.0 million barrels.  However, there was a build of 1.9 million barrels of crude in Cushing, OK.

The Federal Reserve’s announcement is due out today at 2 p.m. ET after the two day FOMC meeting Tuesday and today.  The lower U.S. dollar yesterday was driven by weaker-than-expected U.S. economic data. Analysts believe the weak data cut the likelihood of the Fed raising interest rates this year, but especially in June.  

The DOE statistics released at 10:30 a.m. ET have the market coming off.  The DOE reported a 2.0 million barrel build in crude inventories, with a build of 1.7 million barrels in Cushing.  Gasoline had a build of 1.6 million barrels, and distillates had a draw of 1.7 million barrels.  As of 11:15 a.m. ET, HO is up just under two cents and RBOB is now down almost a penny. 

The resistance levels for today are: WTI 44.22, HO 1.3217 and RBOB 1.5782. The most important contract to watch is RBOB; if it finishes above 1.5782, prices can be expected to move higher.

4_26_settle.png


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.


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