Specification Changes Are Coming But Will Prices Soften

Author: Pam Corn   Date:

As we head into the month of August, the New York Mercantile Exchange front month futures shifts to September. When we think of September we think of the fall and the seasonal changes to gasoline specifications. While the price spread between the expiring August contract (summer grade) and the October contract (reflecting higher reid vapor pressure) is over $0.20 per gallon. Will the market prices go down as the spread suggests?

Physical prices seem to be meandering in a price range trading news. Since June 20th WTI crude oil has been trading from $54.40/BBL to $60.50/BBL. The situation with Iran and potential disruption in the Straight of Hormuz is bullish, along with OPEC’s production cuts, bullish crude draws, and the hurricane season. Fear of weak demand has been keeping the markets on edge even with all the bullish sentiment.

Our bet is we will not see the typical fall price swoon with all that’s happening.

Post Views: 574
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.