The Great Fall of China

By: Daniel Guttman / January 7, 2016

Yesterday, WTI crude closed down $1.24/bbl to $32.73, HO closed down $0.0446/gal to $1.0807, and RBOB finished down $0.0949/gal to $1.1618.  This morning HO was trading down about $0.025, however has since rebounded and is trading up about $0.01. RBOB is up about $0.0050/gal. 

The Chinese stock market was shut down for the second time this week after a 7% daily down limit was hit during the first fifteen minutes of trading. As China moves to devalue the Yuan, it is feared that the second largest economy may be weaker than originally thought. As the world's largest importer of crude, China’s weakened economy, along with OPEC’s decision to produce at current levels, has increased the bearish outlook for crude.

Canadian company TransCanada is suing the U.S. over the Obama Administration’s decision to cancel the Keystone XL pipeline project, which would carry over 800,000 barrels of crude a day from Canada’s oil sands to American Refineries on the Gulf Coast. The project could sustain growth, create thousands of jobs, and introduce billions into the economy, eventually resulting in lower petroleum prices to the US. The company, suing through the North American Free Trade Agreement (NAFTA), is seeking $15 billion in damages, claiming it was unconstitutional for Congress to regulate interstate and international commerce. TransCanada is arguing that the decision to deny its multibillion dollar investment was unjustified as the decision was based on “false” discernments that international climate change could result from the project. A lawsuit has been filed in Houston asking that the decision by the Obama Administration to cancel the Keystone XL pipeline project be overturned.0106settle.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.


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