When Will We Reach $50?

By: Angela Agostinone / May 18, 2016

It seems like WTI could hit $50/bbl sometime this week. The futures market is finding support from several supply disruptions currently happening. The first is that the Canadian wildfires switched direction back toward production facilities, causing another evacuation of the area. Suncor Energy Inc. and Syncrude Crude were both shutting down oil sands operations. Second, there are continued concerns around Venezuela’s economy and the attacks on facilities in Nigeria.

Another piece of bullish news was the API statistics that were released last night. The APIs reported a draw across the board; crude drew 1.1 million barrels, gasoline 1.9 million barrels and distillates 2 million barrels. The only bearish statistic was a 508,000 barrel build in Cushing, OK. 

The DOE statistics released this morning showed an overall build in crude inventories of 1.3 million barrels, 461,000 barrels coming from Cushing. Both refined products had a larger draw than what was reported in the APIs.  Gasoline drew 2.5 million barrels, and distillates 3.2 million barrels.

HO prices have increased five of the last six trading days, and RBOB prices increased all of the last six trading days. After the release of the DOE statistics it took the market some time to react, then it rallied up over five cents, but as of 12:15 p.m. ET it is only up around three cents.  

 

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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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