800-899-0747

Oil Complex Gets Back In the Range

Main Image
Daily Settlement Prices

Wednesday morning the energy complex reached new recent lows. The downward move was led by RBOB, which saw the August contract down as much as 4.8 cents early, and front month RBOB reached its lowest outright level since April 7th of this year. However, this early weakness did not last. WTI and ULSD were bid higher, pulling the RBOB contract along with it and ultimately seeing all three settle in the green.

The WTI settle at $47.43, puts the contract almost exactly in the middle of the recent range we have been mentioning. The post-settle market was lively after the release of the American Petroleum Institute’s (API) weekly data release. The report was highlighted by a larger than expected draw in inventories for the three major categories. The API data showed a draw in crude oil inventory levels of 6.7 million barrels, a distillate stock draw at 3.6 million barrels and gasoline inventory draw of 2.3 million barrels. This draw in inventory was bullish on outright price and drove prices to a penny plus higher than settlement for the products.

Market participants eagerly await today’s Department of Energy’s data (which will be delayed 30 minutes from its normal schedule) to see if both agree on a sizable draw.

On the Gulf Coast trading side, basis trading was more active on the gasoline side of the barrel. In part this was due in part to reports of issues with a gasoline making unit at one of the area’s refineries, which drove CBOB basis up a penny and RBOB basis up 25 points. Today is a scheduling day for both gasoline and diesel in the Colonial Pipeline system, so higher volatility and volume can be expected.

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