Where is the Crude Going?

By: Angela Agostinone / October 5, 2016

Yesterday, WTI crude closed down $0.12 to $48.69/bbl, HO closed up $0.0012 to $1.5544/gal, and RBOB finished up $0.0291 to $1.4996/gal.  The strength in RBOB futures was due to Hurricane Matthew hitting Haiti yesterday and concerns that it will hit the U.S. East Coast next.  Last night, the market rallied after the API statistics were released.  The API reported a 7.6 million barrel draw in crude inventories. Gasoline showed a build of 2.9 million barrels, and distillates a draw of 1.3 million barrels. As of 10:10 a.m. ET, the market is up across the board; WTI is up $0.90/bbl, RBOB is up $0.0050/gal, and HO is up $0.0250/gal.

The DOE statistics released this morning showed a draw of 3.0 million barrels in crude inventories.  Not quite as large as what the API reported, but still this is the fifth consecutive week of crude draws despite expected builds. This report shows the main draw came from PADD III (draw of 4.3 million barrels), which could be a result of decreased crude imports. Gasoline had a small build of 222,000 barrels, and distillates had a draw of 2.4 million barrels.  The market is still up on WTI and HO, but RBOB is flat since the reported build in gasoline inventories was much smaller than the API number.

Hurricane Matthew is still something to keep an eye on. Below is the latest projected path and wind speeds. There are warnings in Florida and the Carolinas, and these states have evacuation preparation plans.

hurricane_matt.png

 

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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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