The China Tussle

By: Daniel Guttman / November 23, 2015

Last week WTI was not able to hold above the $40/bbl mark as the December contract, now expired, closed at $38.99/bbl; the first time WTI closed below $40 since August. However, the current WTI contract for January is trading at $42.27 (+$0.37 on the day). Heating oil is currently trading at 1.3985, which is up $.0272, and RBOB is trading at $1.3163, also up $.0260. In the cash market we saw a week of decline as Chicago RBOB continued its downward trend, reaching levels below $1/gal, and closing Friday at $1.0404/gal. The cheapest gas in the country can be seen in Chicago and around the northern Midwest. New York, on the other hand, has seen very tight prices due to both lower production domestically and lackluster imports over the past month, which have kept retail prices high and tight while the Cash market has wavered a mere 8cts/gal in all of October.

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Currently happening in, and/or impacting the petroleum world:

  • U.S. has seen abnormally lower crude production, while Russia and Saudi Arabia have not cut production.
  • According to Bloomberg, Mexico will receive a record payout of $6 billion from oil hedges this year.
  • Terrorist attacks in Paris and Mali have surprisingly not discouraged stock market poise.
  • The Fed has indicated a possible interest rate rise coming this December.
  • Saudi Arabia has surpassed Russia as China’s top oil supplier.

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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.


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