Market Rebounding on Bullish Inventory Stats

Author: Pam Corn   Date:

Prices are making their way back today after the significant drops yesterday.  The market closed down across the board yesterday; August HO was down $0.0343 to $1.4785/gal, August RBOB closed down $0.0324 to $1.5024/gal and WTI Crude finished down $1.94 to $45.13/bbl. 

API’s were bullish with large draws in both crude and gasoline, which is partially to blame for the market on the rise later in the day yesterday and also this morning.  Crude drew 5.8 million bbl, a surprise to analysts who were expecting a smaller draw of 2.83 million bbl.  Gas drew 5.7 million bbl, and distillates built 375,000 bbl. Oversupply is still very much a concern for analysts after the largest one day loss in crude in over a month yesterday of about 4 percent.  The DOE numbers were bullish as well, showing crude inventories down 6.3 million bbl, gas down 3.7 million bbl and distillates down 1.9 million bbl.

OPEC exported 25.9 million barrels per day in June, about 450,000 bpd more than the month of May, marking a second consecutive month of increases.  Another piece of information to note is that the US drilling rig count was down this past week for the first time in six months.  It will be interesting to see if this is just a one-time occurrence or will continue into a downward trend. 

Currently as of 10 a.m. ET the market is trading up, August HO up $0.0132 to $1.4917/gal and August RBOB up $0.0219 to $1.5243gal.

Post Views: 456
Written by:

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.

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.