Yesterday the market was off all day and then had a small rally at close. June WTI closed up $0.33 to $49.56/bbl, May HO closed up $0.0025 to $1.5452/gal, and May RBOB finished up $0.0016 to $1.6230/gal. The market was off last night and continues to trade down this morning due to the bearish API statistics released last night. The API stats showed a build in crude inventories of 897,000 barrels, a surprising statistic because expectations were a 1.7 million barrel draw. The gasoline build of 4.4 million barrels was an even bigger surprise, since a 1 million barrel draw was expected. Distillates drew 36,000 barrels, which was a bit smaller than what was expected.
The energy complex is trading mildly lower as comments by Russia seem to make the bulls weary despite a strong two-day rally by global equity markets.
Even though February and March felt like spring here in the Northeast, it’s not until June that “summer gas” (aka low RVP gasoline) becomes a requirement at gas stations in some areas of western PA. Here’s a quick reminder on what RVP is and why it matters.
We are trading decisively lower the day after the May WTI contract expired yesterday as the bulls are slashing their positions. The June contract was trading higher than May yesterday, but it wanted to close the gap today and then some. At first, it was gravitating toward the psychological $50 level, but now we’re under it, trading down $1.08 on the day at $49.63/barrel.
The market fell yesterday afternoon after the split DOE statistics. Gasoline dropped to a three-week low after the steady rise in price. We saw draws across the board except in gasoline, which built 1.9 million barrels; crude drew 1 million barrels and distillate drew 1.9 million barrels. Crude runs rose 351,000 bpd, distillate fell 457,000 bpd to 4.177 million bpd, and gasoline is at 9.223 million bpd. Yesterday, front month heating oil closed down $0.0406 to $1.5813/gal, front month RBOB closed $0.0520 to $1.6590/gal, and WTI Crude closed down $1.97 to $50.44/bbl.