Friday October 28, 2016
Oil prices edged higher on Thursday, closing higher for the first time this week on news of yet another OPEC-related headline that indicated several key members of the cartel have voiced support of a production cut. If these reported headlines and rumors have become tiresome, it further highlights the uncertainty and unintended comedy in the market.
December WTI closed 54-cents higher on Thursday (settling $49.72), up about a dollar so far this month (hovering in a range around $50 for the better part of it). RBOB and Heating Oil also posted minor gains on the day, and those contracts are up a few cents each this month as well. The November RBOB and HO contracts expire on Monday.
Colonial Pipeline continues to re-balance its shipping schedule after the pipeline leak that disrupted deliveries for the better part of September. The next two gasoline cycles (CPL cycle 60 and 61) have been cut by 20% and two gasoline cycles in December (CPL cycles 68 and 69) have been eliminated altogether. Colonial hopes that these reductions will spread out deliveries throughout the system, after an extended period that saw lack of supply followed immediately by too much of it.
Published by PAPCO, Inc. (PAPCO)
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