You're a Mean One, Mr. EIA

By: Daniel Guttman / December 24, 2015

There was continued bullish data in the news yesterday with the EIA revealing a 5.9 million barrel decline in U.S. crude inventories from last Friday to tomorrow. That draw can be attributed to plummeting stocks in the Gulf Coast, which fell nearly 8 million barrels last week. Keep in mind that there were builds in Cushing, OK, with crude inventories increasing 2 million barrels to 62.1 million, which is about 100,000 barrels away from the all-time high. Even with that build, the overall data still revealed a draw.

Since we are approaching the end of the year, sharing information on outlooks for the New Year is crucial. PVM Oil Associates released its final 2015 commentary on oil market fundamentals, "A catastrophe is looming and something will have to give," regarding oil prices and supply heading into 2016. PVM believes that excess oil supply will continue to dominate market news next year, thanks to the possibility that OPEC oil production could rise above 32 million-b/d. Iraq also expects that its oil exports will hit a new record this month, and there is also the prospect that Iran will have sanctions removed by the end of January. If sanctions are removed, it would add another 500,000-b/d to 1 million-b/d of supplies to the marketplace.

Interesting news:

  • OPEC forecasted oil being at $70/bbl by the year 2020, and forecasted the demand for OPEC oil to decline through 2020.
  • PVM reported there will be a huge crude oil surplus again next year, at a level that will be on pace with this year. Saudi Arabia deciding to cut production or a large supply disruption could cause a change to the surplus outlook. 

 

We at Guttman Energy appreciate your business and hope all of you have a Merry Christmas and a happy holiday. Stay safe, stay warm (even though it won’t be a white Christmas in most cities) and enjoy the time with your families!

1223settle.png  


Categories: Daily Market Update


Daniel Guttman

Written by

Daniel Guttman

With a background in wholesale and commercial sales as well as pipeline scheduling, Daniel is currently the Manager, Business Development in the Card Access Fuels department. He is tasked to find new and innovative solutions to increase sales opportunities for the sales team while managing and evaluating internal department processes. He assists with day to day personnel management, customer data analysis, as well as the daily Pacific Pride inventory and pricing direction.


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.


Comments

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.

Categories

Contact Us