Three Quick Things to Start Your Day

By: Daniel Guttman / November 12, 2015

  1. Right off the bat this morning we are seeing a pull back from yesterday’s settles in the refined products as well as crude. The EIA will release its weekly inventory reports at 11am today due to the Veterans Day holiday. If the data mirrors Tuesday’s APIs we should continue to see price weakness.

  

  1. Oversupply of crude in the United States is unlikely to change anytime soon. The battle for market share seems to have reached a new level with the addition of Iraq into the mix. According to Reuters, “Iraq is expected to export almost 700,000 bpd crude oil into the US this month. Last time such a level was achieved was back in May 2012 and we have to go back to March 2008 to find Iraqi crude oil exports into the US exceeding the 700,000 bpd level.” Inventory levels at Cushing, OK are already just below the all-time high reached in April 2015.

 

  1. The cash market for gasoline has taken a tumble as of late with declining prices in New York, Chicago and the Gulf Coast. The spread between New York and the Gulf Coast has spread to 20 cents. This price disparity has prompted shippers to take barrels into New York on the Colonial Pipeline. This will also likely slow down imports of gasoline into the east coast. According to OPIS, New York Harbor gasoline prices have fallen below $1.40/gal, but remain the most expensive east of the Rockies. Midwest gasoline markets see fuel pricing in the mid-$1.20s. The Chicago cash market for distillate remains the strongest due to ongoing refinery maintenance and cycle scheduling at 4 cents over the December HO contract whereas New York Harbor is closer to negative 1.

 

 


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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