800-899-0747

Oil Market Report: Last Week was a Bear

Main Image
Daily Settlement Prices

Oil prices ended a volatile week on a rather quiet note, settling marginally higher on the day and holding key support above $45. For the week, however, front month WTI was down over seven percent and currently sits at its lowest level in two months (and just above the aforementioned $45).

Since peaking near and trading to $50 a few times in June, WTI has struggled to maintain consistent direction amid a strengthening dollar and on some bearish fundamental news (increased OPEC oil production). Gasoline felt the brunt of last week’s sell-off, with RBOB losing over 14-cents (equivalent to six dollars per barrel). WTI has stayed in the $45 – $51 range since late April but is much closer to the bottom than the top, and a break through lower might signal a move towards $40.

Friday was extremely uneventful, and August WTI remained in a tight dollar range during the day’s session. WTI alternated up and down days during the week, though the down days were substantial while the up days were minor.

Given how oil sold off on Thursday, the day of the somewhat bullish Department of Energy report, it seems that we’ve entered a stage where bullish news is ignored and bearish news is highlighted. As such, any really bearish results could send the market through the $45 support level. On Friday, August WTI gained 27-cents to settle at $45.41.

RBOB and Heating Oil posted slight gains on Friday, but were down 14-cents (RBOB) and 10-cents (HO) for the week. Despite record gasoline demand (approaching 10 million barrels per day), supply is also growing (almost record gasoline production and a flotilla of gasoline-laden ships delivering product to the East Coast). A few major East Coast refiners have already begun to reduce refining output due to declining economics, and it may take more to work down the substantial level of product in tanks in PADD I.

071116 Weekly Pricing Graph

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