The Reverberating Waiting Game

By: Daniel Guttman / August 16, 2016

The market is beginning to fall-off after three consecutive daily gains, trading flat on refined products. Yesterday, September WTI crude finished to monthly highs, gaining $1.25 to $45.74/bbl, HO added $0.0413 to $1.4499, and RBOB settled up $0.0298 to $1.4007. The market is eagerly anticipating the release of today’s 4:30 p.m. API data and the EIA data to be released tomorrow.

 

Despite a reported five million bbl draw in gasoline inventories over the past two weeks, stocks are still at record highs and will have a tough time seeing support as demand begins to dwindle toward the end of summer. ULSD will increase in demand as the weather gets colder, with November HO trading $0.0400 higher than September as a result.

 

Due to refinery issues at BP’s Whiting, Ind. facility and low regional inventories, Chicago prices are the highest in the nation for gas and diesel.  National gasoline and diesel prices are about 5-10 cents cheaper than the Midwest.

 

In other news:

Oil prices are heavily impacting PAO Resneft, Russia’s state-owned oil company, according to a statement yesterday. Profit for the first half of the year was down $1.6 billion, almost half (45.8%) from last year. Last week the Saudi oil minister claimed to be in consultation with Russia’s energy minister to agree on plans to stabilize the market.

Norway’s crude oil production has increased 10% over the past year, with output now at a five year high. At 1.73 million bbls a day of production in July, output is the highest since March 2011.

Emmanuel Kachikwu, Nigerian Minister of State for Petroleum, has stated that he thinks there is little likelihood of an OPEC production cut next month in Algeria.

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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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