The Bears Have Escaped From the Zoo

By: Daniel Guttman / September 1, 2016

The market took a big turn south yesterday due to continued strength of the U.S. dollar, and somewhat bearish statistics on the DOE report yesterday morning. The API report on Tuesday evening kick-started the downward momentum, showing a build in crude of nearly 1 million barrels, and a build of 3 million barrels on distillates. Yesterday, the market closed down over 4 cents on diesel and gas, with crude down $1.65. Currently we are seeing a continued drop off, with diesel down $0.0400, gas down $0.0425, and crude down $1.14. HO fell below $1.4000 and crude is cruising back down towards $40 a barrel, but not quite there yet, sitting at $43.62. These stats are as of 11:00 a.m. EST.

As we begin the month of September keep in mind that OPEC will meet at the International Energy Forum in Algeria, and there have been talks again of a “production freeze on crude.” OPIS made an important statement this morning, saying: “Even if a freeze were to take place, OPEC output in August was one of the highest in history at 33.5 million barrels per day, and most countries are still aiming to maintain market share amidst competition from non-OPEC countries.” It wouldn’t be a surprise if the market has a lot of volatility leading up to the meeting, but OPIS makes a great point that even with a freeze, we will still be flooded with product.

The DOE inventory statistics are a reminder that plenty of product exists with inventories of crude and refined products being on the high side of 5 year averages. U.S. East Coast distillates are at the highest seasonal level since 2010 and Padd 3 (GC) crude is the highest ever at this time of the year.  

Interesting news:

  • Keep an eye on Tropical Storm Hermine making landfall tonight on Florida’s Gulf Coast. The storm is expected to reach the Carolinas Friday and Saturday. Another system also appears behind it that could hit the Gulf Coast next week.  0831set.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.


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.


Contact Us