What Will November Bring?

By: Angela Agostinone / November 1, 2017

Yesterday was the last trading session of the month for the November (X) futures and all products are now trading prompt month December (Z) futures.  WTI crude closed up $0.23/bbl to $54.38, Dec HO finished up $0.0043/gal to $1.8805, and Dec RBOB closed up $0.0193/gal to $1.7325.  The market continues to trade higher into today’s trading session.  The API statistics last night were extremely bullish with large draws reported across the board.  Crude inventories drew 5.1 million barrels, distillates drew 3.1 million barrels, and gasoline drew 7.7 million barrels.  Also supporting prices is the continued rhetoric around OPEC extending production cuts until the end of 2018.  Rebalancing rhetoric is likely to continue all the way up till the official meeting towards the end of this month in Vienna.

The DOE statistics released this morning showed draws across the board similar to the APIs.  However, the draws were considerably smaller.   The DOEs reported a draw of 2.4 million barrels in crude inventories, a draw of 320,000 barrels in distillates, and a 4.0 million barrel draw in gasoline.  After the release of the DOEs, the knee jerk reaction had turned HO negative on the day but has since rallied back to flat as of 11:15 am EST.  RBOB, with its larger than expected draws, remains higher by almost $0.03.

The Chicago cash market continues to be a bit volatile due to the Explorer Pipeline leak and the turnaround season in the refinery industry.  Platts showed ULSD being $0.0925 over Dec HO and CBOB $0.40 over Dec RBOB.  It is interesting to note that OPIS reported ULSD $0.14 over and Argus $0.11 over.  Normally, these indexes are closer together. 

Important resistance levels to watch today for the uptrend in prices to continue:

WTI Crude:  $54.94

Heat:  $1.8952

RBOB:  $1.7525 *most important

 

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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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