Markets are starting the week headed higher as there is again hope that OPEC may find a reason to cap their production during their meeting this week. WTI Crude is up .58/bbl to 45.06 this morning. This seems to be a game they have played over the past year creating suspicion over their decision to cut production to give the market a bounce.

The Baker Hughes rig count for US gas and diesel rose to 511 for the Sept 23 week. Up from a low of 404 in May, but still 327 less than a year ago at this time.
According to OPIS, the BP Refinery in Whiting, Indiana, has had several both planned and unplanned repairs throughout September effecting crude and refining gallons through September. Husky’s Lima, Ohio Refinery has had few surprises recently coming out of its turnaround this spring.

The East coast is still recovering from the Colonial Pipeline rupture last week. The pipe has since been diverted and is running the line at a lower pressure for safety. Although the market is still inverted (branded cheaper than unbranded) on the east coast, the supply issues are dissolving.

CRUDE         45.06      +.58/bbl
WTI RBOB   1.3852     +.0083/gal
WTI ULSD    1.4270     +0197/gal

About the author