Spring is Here

Author: Pam Corn   Date:

We suggested higher gasoline prices were coming along with spring…

  • On March 22nd the front month RBOB contract settled at $2.0179 or the higher end of the price bandwidth.
  • On April 6th we bottomed out at 1.9547. Then geopolitical issues took center stage and today front month RBOB trades at 2.0845. A nice .13 price move to the upside.
  • You may believe the recent news in the Syria is driving  prices higher however, the real driver is strong demand along with OPEC production cuts.
  • Gasoline is running at a record for the month of April which is amazing considering all the bad weather.
  • Gasoline supply fell 2.968 million barrels last week.
  • Crude oil fell 1.071 million barrels driven by a major 1.115 million barrel drop in Cushing, OK.
  • Distillate supply fell by a shocking 3.107 million barrels driven by cold weather demand.
  • US Crude Production rose 15,000 barrels and crude imports fell by 720,000 barrels.
  • Gasoline Production increased 10.2 million barrels a day.

With the Saudis saying they want $80 + a barrel oil along with hedge funds adding length, where will prices be when the weather improves and the real driving season starts?

One thing is certain the price volatility will continue. We have customers buying on dips and owning some inventory to balance their purchasing portfolio. This strategy had some of our customers paying OPIS Low minus $0.06 to $0.07 in their markets today.

Talk to us at Guttman Energy about developing price a strategy for you in this environment.

 

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As Director of Marketing for Guttman Holdings, I lead our advertising, digital marketing, branding, and public relations strategies, and share my expertise to communicate key messaging to all our stakeholders. With my diversified leadership background, I also drive innovation and cutting-edge business practice and results, to generate interest in Guttman Energy, Guttman Renewables, and Source One service offerings.

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