Will Stats Bring It Right Back?

Author: Pam Corn   Date:

Oil prices are on the rise this morning, as traders make their moves in advance of API stats. The expectation is that crude oil and gasoline will show a decrease in inventories from last week. Distillates on the other hand are thought by some to be on the rise (Reuters).

Some analysts are estimating that crude oil has decreased 2.3 million barrels, give or take. Some wonder why the market is not in the green even more so this morning, given the bullish prediction for statistics tonight/ tomorrow (A.P.I. / D.O.E.). To those who are curious why the oil markets aren’t jumping up a large amount quite yet, I will be glad to shed some light.

Reason why market is only up slightly this morning:

  1. Statistics– Due to come out tonight/ tomorrow
  2. Supply– Supply glut lingers
  3. Nigeria and Libya – Oil production is increasing
    1. Libya’s oil production – Rose from 885,000 to 935,000 bpd last week
    2. Nigeria’s exports in August – Predicted to achieve their highest level since March of 2016 (2 million bpd)
  4. Fuel demand – Still relatively weak compared to supply
  5. Rig counts/U.S. Production – Showing no signs of weakness

As of 10:00 a.m., distillates and RBOB are up approximately 1.5 cents, while WTI Crude is sitting slightly below the $44 threshold. If statistics shows big draws on crude and/or refined products, it will be interesting to see how the market reacts. The market has been on the downtrend for weeks now, let’s wait and see if it starts to bounce back.

Post Views: 371
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.