Spring is Here

By: George Butler / April 20, 2018

We suggested higher gasoline prices were coming along with spring...

  • On March 22nd the front month RBOB contract settled at $2.0179 or the higher end of the price bandwidth.
  • On April 6th we bottomed out at 1.9547. Then geopolitical issues took center stage and today front month RBOB trades at 2.0845. A nice .13 price move to the upside.
  • You may believe the recent news in the Syria is driving  prices higher however, the real driver is strong demand along with OPEC production cuts.
  • Gasoline is running at a record for the month of April which is amazing considering all the bad weather.
  • Gasoline supply fell 2.968 million barrels last week.
  • Crude oil fell 1.071 million barrels driven by a major 1.115 million barrel drop in Cushing, OK.
  • Distillate supply fell by a shocking 3.107 million barrels driven by cold weather demand.
  • US Crude Production rose 15,000 barrels and crude imports fell by 720,000 barrels.
  • Gasoline Production increased 10.2 million barrels a day.

With the Saudis saying they want $80 + a barrel oil along with hedge funds adding length, where will prices be when the weather improves and the real driving season starts?

One thing is certain the price volatility will continue. We have customers buying on dips and owning some inventory to balance their purchasing portfolio. This strategy had some of our customers paying OPIS Low minus $0.06 to $0.07 in their markets today.

Talk to us at Guttman Energy about developing price a strategy for you in this environment.

 


Categories: crude oil, Daily Market Update, gasoline prices


George Butler

Written by

George Butler


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.


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