The EIA & The Government, What Else Could It Be?

By: Daniel Guttman / December 17, 2015


  1. Yesterday’s big news epicenter came in the form of government announcements. The Federal Reserve raised its benchmark U.S. federal funds rate for the first time since 2006, increasing by 0.25%. Lawmakers have agreed to end the ban on U.S. crude oil exports. Votes in both the House and Senate could come before the end of the week. Lifting the ban is expected to be a “long term game changer” for the U.S.:
  1. As if the U.S. market wasn’t bearish enough, crude imports soared to 8.31 million barrels per day. The increase in imports is approximately 300,000 barrels higher than last week, and the highest import levels since September of 2013. The current spread between Brent and WTI has been narrowing over the past week, making imports more attractive for buyers. With the ongoing builds in inventory across the board it is difficult to see a point where the market might reverse course.
  1. To understand just how bearish the market is, not just now, but for the future, one must look at the substantial contango across the major products. WTI is averaging approximately $1 per month, and Brent is averaging the same. HO has about 2 cents per gallon per month, and RBOB varies due to spec change but is steeper than years past. The future looks bearish for oil as of right now.


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.

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