SPR, APIs, and DOEs

By: Angela Agostinone / May 24, 2017

The market was off early Tuesday morning because of President Trump’s proposal to sell half of the U.S. Strategic Petroleum Reserves (SPR) over the next ten years.  That was soon outweighed by the bullish OPEC rhetoric and the realization that the budget proposal has no meaningful impact currently.  The day ended with July WTI closing up $0.34 to $51.47/bbl, June HO closing up $0.0046 to $1.6067/gal and June RBOB finishing down $0.0012 to $1.6614/gal. 

This morning the market is getting support from the OPEC meeting in Vienna happening today and tomorrow, as well as the bullish API statistics released last night.  As stated over the past few weeks, OPEC is meeting this week to decide on extending production cuts for another nine months.  Expectations are that these cuts will be extended; OPEC members Saudi Arabia, Iraq, Algeria and non-OPEC member Russia are all in favor of the extension.  The final verdict of what is agreed upon will be out tomorrow afternoon.  The API statistics showed draws across the board. Crude inventories drew 1.5 million barrels, 200,000 barrels coming from Cushing, OK.  Gasoline inventories drew 3.2 million barrels, and distillates drew 1.9 million barrels.   

The next piece of news the market was awaiting was the DOE statistics released today at 10:30 a.m. ET.  The DOEs differed from the APIs in that the crude statistics were more bullish, but the refined products were more bearish.  The APIs showed a draw in crude inventories of 4.4 million barrels, with about half coming from PADD III, and 741,000 barrels coming from Cushing.  Gasoline only showed a draw of 787,000 barrels, and distillates only 485,000 barrels.  Right now, these statistics are driving the market; HO is trading down about $0.0025 and RBOB is down about $0.0075. 

 

5-23 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