Tuesday July 26, 2016
After breaking below key support levels, September WTI ran lower on Monday, its third consecutive leg lower. This technical side was coupled with further bearish fundamentals, which include the cliché of oversupplied markets. With yesterday’s downward move, front month WTI is now at its lowest level since April 26th. Further we are now about $8.50 removed from WTI year-to-date high, which we witnessed in early June. The U.S. dollar tested its recent high (established Friday) before bouncing off the level. This strength in the currency served as another bearish cloud over the market.
Gulf Coast gasoline remains active and trending higher. Yesterday saw about a 50 point increase in basis levels, which is several days of movement higher. Tuesday marks the scheduling day for both gas and diesel into the Colonial Pipeline system. Although the past several scheduling days have been less volatile, these days can often see large variations in price movement.
Published by PAPCO, Inc. (PAPCO)
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