Monday September 26, 2016
The oil market ended a volatile week on a substantial negative note, as the market is now focused on this week's special "not really a meeting" OPEC gathering in Algeria to see if the world's state run oil producers formulate a plan on near term oil production. There is still much skepticism as to whether Saudi Arabia and Iran can agree on such a plan, and also whether a tacit agreement will actually result in compliance. Since the meeting this week is really unofficial, it would be surprising if anything firm is announced, with headlines and comments likely having more immediate impact on flat price moves. Colonial Pipeline continues to operate in normal fashion, per their updates, and supply problems should ease in the coming days and weeks.
November WTI dipped by almost two dollars on Friday, with most of the losses in the afternoon (ultimately settling at $44.48). For the week, November WTI managed to gain eighty-six cents, and prompt oil still remains caught in a range between $43-$48. RBOB and Heating Oil each suffered multi-cent losses on Friday, though for the week RBOB was clearly the weakest member of the oil trio (losing over cents; the prior week, RBOB was up ten cents). Now that the EPA will allow any type of gasoline to be delivered into the NYMEX window early next month, the New York Harbor supply situation doesn't seem so disrupted. Note that the prompt RBOB and HO contracts expire on Friday.
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