You would think the Keystone pipeline restarting yesterday at reduced pressure would weaken the market, but unfortunately for consumers it was not enough to hold off the rally we are seeing today. Reports and rumors are stating that crude oil stocks at Cushing, OK, may be significantly lower in this week’s supply data. Keep in mind that Cushing is the largest crude oil storage facility and NYMEX WTI delivery point in the U.S. So how vital is the Keystone to the crude levels at Cushing? Moving from Canada to Oklahoma, the Keystone pipeline is capable of delivering more than 550,000 barrels per day of crude. Another factor that is supporting this rally is the drop to a near eight month low of the dollar this morning.
Taking a look at the market numbers yesterday: Brent reached a high of $43.06/bbl and WTI $40.75/bbl. The closing numbers were slightly lower at $42.83/bbl on Brent and $40.36 /bbl on WTI. RBOB gained 4.4cts/gal and diesel 1.43cts/gal.
Interfax reported that Saudi Arabia and Russia reached an agreement on an oil-production freeze. Please tell us something we don't know. Yet, the market took another jump up around the time the announcement was made today. Something as simple as that strengthened today’s market. As of 1:00 P.M EST, diesel is up .0520 and gas is up .0200. Crude surged up 3%, reaching a year-to-date high of $41.94/bbl. The actual meeting will take place on Sunday in Doha, and maybe they will come to an ACTUAL outcome.
Here are some retail statistics to ease the constant news of crude freezing and bullish and bearish sentiment:
The DOE national average retail prices:
Gasoline $2.0690 vs. last week -.0140 vs. last year -.3390.
Diesel $2.1280 vs. last week +.0130 vs. last year -.6260.