The Running (Off) of the Bulls

By: Daniel Guttman / March 15, 2016

Yesterday, the market seemed to finally reflect bearish sentiment, and is continuing to push downward this morning on fears that stats released today could likely indicate more bearish news. WTI crude closed down $1.32/bbl to $37.18, RBOB closed down $0.0217/gal to $1.4226, and HO finished down $0.0215/gal to $1.1965. HO is currently trading at a loss of -0.0200 and RBOB is trading at -0.0300.

A combination of bearish signals is influencing trading today. The latest poll by Reuters indicated that U.S. crude stockpiles are expected to increase by 3.3 million bbls. Further, Iran has terminated hopes of a coordinated production freeze, stating Sunday that the Islamic Republic will only cooperate in production cuts once its own production levels hit pre-sanction levels of 4 million barrels a day. We are now told that the meeting to discuss production freezes will take place mid-April in Doha, although an exact date has not yet been decided. Production freeze talk is not enough to convince the market to move upward though, and with near full domestic storage, demand projections are too weak to sustain higher prices for long.

The Obama administration has rejected a plan to auction off certain drilling rights in the Atlantic Ocean waters off the coast of VA, NC, SC, GA, and FL. The American Petroleum Institute supported the plan to tap into new reserves, with benefits including job creation, U.S. energy security, domestic investment, and revenue to the government. Environmentalists, coastal residents, and the U.S. military opposed the plan, expressing concerns of climate change, oil spills, and coastal industrialization.Capture315.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.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us