Running Out of Steam

By: Daniel Guttman / August 22, 2016

Crude closed last Friday at $48.52, up $4.03, or 9.06%, on the week. ULSD saw a weekly gain of 11 cents and RBOB a staggering 14.2 cents. All of the market noise surrounding the OPEC meeting that will take place in late September was clearly the driving force behind last week’s market upsurge. However, futures prices are trading lower this morning and refined products seem to be giving back some of last week’s gains as the bulls seem to be running out of steam. WTI is down 1.44 to $47.08, RBOB is down $0.0241 to $1.4888, and ULSD is down $0.0263 to $1.4933.Capture75413.png

WTI crude had gained nearly 20% since early August, and was up a record 16% in the last seven trading session, according to Bloomberg.com. However, the market has retreated ever-so-slightly as bearish information once again floods an already “flooded” crude market. Over the past few months we have scantily mentioned the hostility that has taken place in the Niger Delta. The Niger Delta Avengers (NDA) have been attacking oil and gas infrastructure since January in the aims of creating a sovereign state in the Niger Delta. Well, according to the official NDA website, they have declared to put down their weapons and hereby cease attacks in order to negotiate with the federal government of Nigeria. This will give Nigeria a much needed opportunity to increase their crude production, but it will however add to the global crude supply-gut. On top of that, Iraq, OPEC’s second largest producer, will be increasing crude exports by roughly 5% following an agreement with the KRG, Kurdistan Regional Government, regarding three oil fields in the Kirkuk region.

-1x-1-8.png

Other supply information in the mix: Iranian production is getting close to pre-sanction levels at 3.85 million barrels per day. Saudi Arabia’s new oil minister has hit the ground running and has its production approaching a record high of 10.8 mbpd. Additionally, Baker Hughes data showed an increase of 10 U.S. oil rigs last week to a total of 491, the 8th consecutive weekly gain.

Capturesdgdrgergh.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