The Highs of 2016

By: Angela Agostinone / April 13, 2016

Yesterday, the market closed at 2016 highs.  WTI crude closed up $1.81/bbl to $42.17, RBOB closed up $0.0266/gal to $1.5343, and HO finished up $0.0612/gal to $1.2759.  It was reported that oil prices rose above their 200-day moving average for the first time since the middle of 2014. However, this morning the market is in the red because fundamentally nothing has changed, but on the technical side it has been very bullish.

Over the last week, the market was getting a lot of support from all the stories of the oil output freeze meeting on April 17th. This morning however, comments from Saudi Arabia’s Oil Minister Ali al-Naimi has the market giving back some of the week long gains. Ali al-Naimi made a comment of “forget this topic” when asked about the agreement on the output freeze between Saudi Arabia and Russia. 

 

The chart below shows WTI prices over the past few years. Two things to note: the first, yesterday we hit the high of the year and second, the steep increase over the last week.

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The API report released last night showed a build in crude inventories of 6.2 million barrels, and a draw of 1.9 million barrels in Cushing, OK.  This draw in Cushing is no surprise because of the issues the Keystone pipeline had last week, delaying deliveries from Canada into Oklahoma. It was reported gasoline had a draw of 1.6 million barrels, and distillates had a 500,000 barrel draw.

The DOEs released at 10:30 a.m. ET showed a similar report as the APIs for crude inventories; a 6.6 million barrel build and a 1.7 million barrel draw in Cushing.  Gasoline had a draw of 4.2 million barrel, and distillates had a 505,000 barrel build. 

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Categories: Daily Market Update


Angela Agostinone

Written by

Angela Agostinone

Angela manages daily price changes from suppliers to ensure Guttman Energy customers are getting the most current and competitive rack prices. She is also responsible for relaying supplier product allocations to Guttman Energy's sales and logistics team, as well as analyzing specific benchmarks such as OPIS, Platts, and Argus to ensure each customer is getting the greatest value from their contracted fuel purchases.


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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