800-899-0747

Big Pullback in the Oil Complex Yesterday

Main Image
Daily Settlement Prices

The energy complex witnessed a sizable pullback on Tuesday, due more to a variety of small items, rather than one colossal event. To start, renewed fears about Brexit kept pushing the U.S. dollar higher, putting the energy complex on a lower footing. Concern over global demand and Genscape data that points to another build of crude oil inventory levels in Cushing, OK continued the downward momentum. It is likely that technical trading throughout the day pushed the final momentum lower.




With the dramatic downward move, front month RBOB reached its lowest level since mid-April, and front month Heating Oil (HO) moved towards the lower end of its recent range. Furthermore, RBOB settled almost .0170 below HO, which is rare for this time of year. The RBOB contract usually commands a premium over its HO counterpart. As both inventories remain high, it will be worth monitoring this relationship going forward.




The Gulf Coast market was active for both main products, as Tuesday was the first day of a three day scheduling window on Colonial Pipeline. While distillate basis moved down slightly, gasoline basis rose higher. RBOB was up around 25 points, with the CBOB counterpart up almost a penny. Inventory data this week will be delayed by a day (due to the July 4 Holiday) so the news cycle will be heavier in the 2nd half of the week.



Published by PAPCO, Inc. (PAPCO)



PAPCO Newsletter Disclaimer. The information that is published in this newsletter, including the market reports, is derived from trade, statistical, and other sources that we believe are reliable and accurate. However, PAPCO does not guarantee the completeness, accuracy, or reliability of such information, and information should not be relied upon as such. Additionally, PAPCO assumes no responsibility for the material contained in the newsletter and the views expressed therein. Further, PAPCO expressly disclaims any express or implied warranties or guarantees with regard to such information. The information contained in this newsletter and any views expressed herein are provided for your informational purposes only and should not be interpreted in any way as an offer, invitation to make an offer, inducement, or recommendation to buy or sell options contracts, commodity futures, products, or any other type of security.


0 Comments

0 Comments :

Post Comment

*
*
*
*
Commercial Price Risk Mgmt Lubricants Retail Home Heat About Us
Government
Wholesalers
Fuel Products
Services
Consignment
Marine
Propane
DEF
Fleet Card
Energy Markets
Manage Risk
Custom Solutions
6 Easy Steps
Pricing Tools
Weekly Updates
Commercial
Industrial
Passenger
Marine
Equipment
Inventory Mgmt
Branded Fuels
Unbranded Fuels
Custom Solutions
Site Development
C-Store support
Inventory Mgmt
Pricing & Incentives
Delivery Options
Service Programs
Propane
Price Protection
Discounts
Home
Service Areas
SDS (MSDS)
News & Events
Careers
Contact Us

Sign up for
Email Updates

800-899-0747
757-499-5977

4920 Southern Blvd
Virginia Beach, VA 23462

© Copyright 2019
PAPCO, Inc.

Site Map
Privacy Statement
Terms & Conditions