What Blooms First: Spring Flowers or OPEC Meeting?

By: Angela Agostinone / March 9, 2016

Yesterday the market finally gave back some of the gains from the rally that has been happening over the past 2 weeks. WTI crude closed down $1.40/bbl to $36.50, RBOB closed down $0.0049/gal to $1.3878, and HO finished down $0.0225/gal to $1.20.  The rally was thought to have been overdone, however, the market is back up this morning despite the bearish API data reported last night.  The APIs showed another build in crude of 4.4 million barrels.  It was reported gasoline had a 2.1 million barrel draw, and distillates had a small draw of 130,000 barrels. 

The market continues to rally as the morning goes on, driven once again by talks of an OPEC/non-OPEC production cut meeting. The meeting was supposedly scheduled for March 20th, but the Russian energy minister revealed the date has yet to be finalized. With that being said, it seems as if Iran is not in agreement with the talks and wants to reclaim its market share.  Iran’s crude oil exports are at 1.8 million barrels per day, and will likely be at 2 million barrels per day by summer. 

The key resistance level for RBOB is 1.3896. Yesterday the contract went through this level but finished 18 points below. Currently, RBOB is above this level, but the key is whether it will hold. If it does close above this level, it will affect the where crude and distillates are heading as well. Also note, oil prices are very volatile in the spring. As PVM Oil cleverly put it, “spring seems to make oil bulls frisky.” Last spring’s rally amounted to a $24/bbl gain from mid-January to the end of April, and so far this year is up about $10/bbl.

The DOE statistics released today at 10:30 a.m. ET showed a build in crude of 3.9 million barrels, 690,000 barrels of which is in Cushing, OK. Refined products both had much larger draws than the API report.  Gasoline had a 4.5 million barrel draw and distillates had a 1.1 million barrel draw. The draw in gasoline is not unusual; we typically see draw-downs in gas inventory as the U.S. starts the transition to lower RVP summer grade gasoline.



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.


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.


Contact Us