Crude Builds Trump the Draws on Refined Products

Author: Pam Corn   Date:

We have seen big changes in the market since last Thursday. Yesterday the April HO Contract closed at $1.5567/gal down $0.0572 and the April RBOB Contract closed at $1.6526/gal, down $0.0272.  It is interesting to note in the last two weeks, subsequent to the DOE Reports, front month heating oil has closed over 5 cents per gallon.  WTI Crude fell by 5.38% on Wednesday, dropping almost three cents to close at $50.28.  The market continued its slide early this morning and hit a low of $1.5209/gal for April HO, and $1.6067/gal for April RBOB. As of 10:07 a.m. ET the market is climbing its way back up, currently trading at $1.5448/gal for April HO, and $1.6393/gal for April RBOB. 

Crude seems to be the champion this week in the battle of the bulls and the bears with another large build. According to Thomson Reuters News, U.S crude stocks hit a record high at 528.4 million bbls.  Crude built by 8.2Mb, which was more than four times the expected build.  It will be interesting to see how long the U.S. Crude build streak of 2017 will continue.  From a Cash Market standpoint, New York Harbor continues to go stronger which can be attributed to the record low imports and the large crude build.  The real question is, will these drops in oil prices recover soon or continue to weaken?

3-9 blog snip.png

Post Views: 350
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.