Up or Down?

By: Daniel Guttman / September 21, 2017

Now that U.S crude production is slowly getting back on its normal track, it is likely we will see a near-term pull back in crude oil price.  We continue to see the inverse relationship between crude prices and U.S. production in the markets.  From their highs of $107/bbl in 2014, crude oil prices have since plummeted, while US crude oil production has increased by 10.7%.  The slowdown in oil rig counts has also kept a bid under the markets.  For the past 5 weeks, there hasn’t been an increase in the oil rig count and crude oil futures have risen by over 2% during that same time frame.

On the storm tracking side, Hurricane Maria, now a Category 3, has plowed through Puerto Rico and is expected to gain strength as she heads toward Turks and Caicos.  Maria is nothing to underestimate.  She has knocked out 100 percent of Puerto Rico’s electrical grid and is the most powerful hurricane to hit Puerto Rico in over 80 years. 

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Yesterday the Federal Reserve announced plans for one more interest rate hike this year and three in 2018.  They are also planning to reduce their bond holding, which will cause an increase in long-term borrowing rates.  Their announcement caused the U.S. dollar to rally putting some pressure on commodities across the board today. 

Currently as of 11:23 a.m. the October RBOB is trading down $0.0197 to $1.6354/gal, October Heating Oil is trading up $0.0065 to $1.8135/gal, and WTI Crude is trading up $0.27 to $50.68/bbl.  With all of the different news hitting the markets, it will be interesting to see which way it pushes our markets next. 

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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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