Will the Market Gobble Up OPEC Rhetoric?

By: Angela Agostinone / November 23, 2016

Yesterday, WTI crude closed down $0.21 to $48.03/bbl, HO closed up $0.0018 to $1.5263/gal, and RBOB finished up $0.0133 to $1.4098/gal.  As of 9:15 a.m. ET this morning, the market is off across the board; WTI crude is down $0.055/bbl, HO is down $0.0050/gal and RBOB is down $0.0085/gal. However, refined products reversed at 9:40 a.m. and are both trading up between $0.0050 and $0.01. The market is very volatile surrounding all the contradictory news out there around oil production.

 The API statistics released last night showed:

Crude inventories: -1.3 million barrels (Cushing: -140,000 barrels)

Gasoline: +2.7 million barrels

Distillates: -350,000 barrels

 

Goldman Sachs released a three-month forecast for WTI crude and its analysts believe it to be $55/bbl.  However, the biggest market driver right now is the talks surrounding the OPEC meeting on November 30th.  The OPEC committee is expected to propose a production cut of 4-4.5% for all OPEC members except Nigeria and Libya.  Russia, the leading non-OPEC producer, has not been invited to the OPEC meeting next week but is reportedly in favor of a freeze versus a cut. 

 The DOE statistics released this morning showed:

Crude inventories: -1.3 million barrels (Cushing: -87,000 barrels)

Gasoline: +2.3 million barrels

Distillates: +327,000 barrels

 

The DOE statistics were very similar to the API statistics for the first time in quite some time.  Even after the DOEs, HO and RBOB futures remain up between $0.0050 and $0.01 as of 11 a.m. ET. We now await the outcome of the OPEC meeting.

11_22 settle.png

 

Have a happy, healthy, and safe Thanksgiving from everyone here at Guttman Energy! Our offices are closed tomorrow, November 24th but open on Friday, November 25th.  Markets in the U.S. are closed Thursday and Friday, but the electronic market will remain open on a limited schedule. 

 


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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