Down Week, Up Day

By: Matt Rosenberg / September 2, 2016

Earlier this week the fundamentals had a grip on the market as the American Petroleum Institute and the Energy Information Administration both showed crude builds, which helped push the oil market down along with the strength of the dollar.  While the supply and demand economic components have not changed, today seems to be a different story.      

The market is up this morning following a week in which we’ve seen declines thus far, potentially amounting to its biggest weekly drop in over seven months.  Today’s movement comes on the heels of the Labor Department’s jobs report released this morning showing nonfarm payrolls increasing by 151,000 for the month of August. The increase was less than the expected gain of 180,000 jobs.  According to the Bureau of Labor Statistics, the unemployment rate remained unchanged at 4.9%, versus expectations of a drop to 4.8%.  This most recent jobs report has somewhat lessened the likelihood of the Federal Reserve raising interest rates at its upcoming meeting later this month and in turn has the dollar trading lower today, pushing the commodities markets higher.  In addition, comments by Russian President Vladimir Putin to Bloomberg stating an agreement between oil exporters to freeze output would be the right decision to support the market have propped prices higher.  Despite persistent doubts of a production freeze agreement, Saudi Arabia’s Foreign Minister said that he was optimistic about producers moving to a common position on oil production.  “We are beginning to have a meeting of the minds but it is a work in progress and we’ll see what happens in the meeting in Algeria.  And I’m hopefully optimistic,” he told reporters.  OPEC’s informal meeting is scheduled for September 26-28.  Additional OPEC rhetoric and rumors on production strategy will continue to move the market over the next few weeks as the meeting draws closer.      

Current prices have diesel and gas both trading higher by ~ $0.02 with crude strengthening by $1.00.              

Capture92-10.png


Categories: Daily Market Update


Matt Rosenberg

Written by

Matt Rosenberg

As a key accounts manager, Matt helps large customers make mission-critical decisions by providing timely advice regarding market conditions.


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