Riding The Seesaw: Up and Down We Go

By: Greg Gill / June 17, 2016

After a big drop in prices across the board yesterday, one might wonder why the market is seeing such a big rebound today.  For starters, DOE stats seemed to be overlooked yesterday, while today people are going back to statistics for guidance. Yesterday in the news, “The Brexit debate” (i.e., should Britain leave the EU) caused violence, as a pro-European Union lawmaker was shot to death. This forced campaigns to go on hold, leaving market analysts with little direction for what will happen next.

As of now, it appears that there is more support for Britain staying in the EU, but only time will tell once the voting has commenced. The thing that nobody knows for sure is what will happen to the global economy if one of the most influential nations (Britain) decides to leave.

Some analysts believe that Britain leaving the EU would have little to no effect on oil prices directly, but could influence them indirectly. For example, if Britain leaves the EU, it is possible that there will be a lot of uncertainty regarding the Euro and the British Pound. In turn, this could push investors to have more faith in the dollar, thus strengthening the dollar. As we know, a strong dollar typically equates to weaker oil prices.

On a side note:

  • Iranian oil officials say that output level of 4 mbpd is set to be reached by the end of the summer and are expecting to pump out an additional 500,000 bpd, which could keep oil prices from jumping up to higher levels.
  • The increasing rig count in the United States seems to be having little effect on WTI, with crude up $1.30 as of 12:00 PM today.
  • Heating Oil (Distillates) trading up approximately .0450 cents, while RBOB is up almost .0300 cents.

Capture7.png

 


Categories: Daily Market Update


Greg Gill

Written by

Greg Gill

I’m passionate about fully understanding my customers’ fuel operations and the fuel markets in which they operate. I want them to view me as their fuel expert. To develop strong, trusting partnerships with customers, I have to provide them with meaningful and timely information to ease the challenges of making smart fuel decisions, allowing them to focus on their core business.


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