What a Start to November

By: Angela Agostinone / November 2, 2016

Yesterday morning, the market rallied in response to the Colonial Pipeline explosion Monday afternoon.  RBOB futures were trading up over twenty cents per gallons at one point, and HO futures were up over seven cents per gallon.  Eventually, the steam ran out when it was announced that the distillate line, Line 2, was already restarted and that the gasoline line, Line 1, should be back up and running this weekend.  The restart of these lines happened much quicker than anticipated and quickly weakened the rally early yesterday afternoon.  WTI crude finished down $0.19/bbl to $46.67, HO finished up only $0.0130/gal to $1.5169, and RBOB closed up $0.0646/gal to $1.4841. 

The market was off this morning due to the bearish API report last night.  The API statistics reported a 9.3 million barrel build in crude inventories compared to an expected build of 1.5 million barrels.  Both refined products drew; distillates by 3.1 million barrels, and gasoline by 3.6 million barrels.   

The DOE statistics out this morning were even more bearish than APIs.  The DOEs reported a build in crude inventories of 14.4 million barrels, with the majority (8.1 million barrels) of the increase coming in PADD III. Distillates and gasoline both still had a draw, -1.8 million barrels and -2.2 million barrels, respectively.  Since the release of the statistics, the market has come off even more.  As of 11 a.m. ET, HO is off about six cents, RBOB is off four and a half cents, and WTI crude is down over a dollar.

In addition to the bearish news, uncertainty surrounds the OPEC meeting later this month. As of right now it is not looking likely that there will be a product cut/freeze, as countries are increasing production ahead of the meeting.  Russia’s production last month was at a high of 11.2 million barrels per day. 

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Categories: Daily Market Update

Angela Agostinone

Written by

Angela Agostinone

Angela manages daily price changes from suppliers to ensure Guttman Energy customers are getting the most current and competitive rack prices. She is also responsible for relaying supplier product allocations to Guttman Energy's sales and logistics team, as well as analyzing specific benchmarks such as OPIS, Platts, and Argus to ensure each customer is getting the greatest value from their contracted fuel purchases.

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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