The Downward Trend Continues

By: Daniel Guttman / April 27, 2017

NYMEX futures are continuing to tumble this morning after the release of yesterday’s DOE reports. Crude drew 3.6 million bbls, more than double of what was expected.  Crude prices have lingered in the high $40’s to mid $50’s per barrel and are projected to stay in the $40-65/bbl range for the next five years.  Both gas and distillate products built, gas 3.4 million bbls and distillate 2.7 million bbls, respectively.  This is likely due to reduction of demand and a drop in exports.  RBOB contracts normally rally about 57% from the winter valleys to summer peaks.  Presently RBOB has only jumped up about 40% from its lowest value in December at $1.2707/gal, 17% percent less than the norm. 

U.S. shale output has been dramatically growing, as a partial response to the potential cuts that OPEC may continue to enforce though the second half of the year. If OPEC continues to cut production As of 11 a.m. ET the market is continuing its downward slide. Front month HO has dropped below the $1.50 mark, down $0.0421 to $1.4946/gal and front month RBOB is also down $0.0480 to $1.5423/gal.  The futures market has been trending downward for three consecutive days. 

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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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