Yesterday’s rally ended with crude closing up $2.27/bbl to $48.53, RBOB up $0.0509/gal to $1.4362 and HO up $0.0632/gal to $1.6115. Last week, WTI was $3.30/bbl less expensive at $45.23, RBOB was $0.0730/gal less expensive at $1.3632, and HO was $0.1139/gal less expensive at $1.4976
API data released last night show that U.S. crude inventories had a 1.2 million barrel draw, with a 100,000 barrel draw in crude inventories for Cushing, OK. There was a build in gasoline of 4.7 million barrels and a large draw in distillates of 2.8 million barrels. Yesterday’s rally occurred after industry data showed the unexpected drop in U.S. crude inventories last week. In the chart below it shows as DOE crude inventories have been gradually decreasing, the cost of WTI has been very volatile but is moving up towards $50/bbl.
The API data was not supported by the DOE statistics that were just released at 10:30 AM today. The DOE statistics show crude inventories had a 3.1 million barrel build, with a build of 98,000 barrels in Cushing, OK. Gasoline inventories had a build of 1.9 million barrels and distillate inventories had a 2.5 million barrel draw. Refinery utilization is down 2.3% from last week, due to heavy turnaround season. Refinery utilization is down 1.3% to 80.4% this year in PADD I and down 7.8% to 79.2% this year in PADD II.
Currently, WTI and HO are both trading higher than yesterday’s settle, while RBOB is trading lower because of the large build in gasoline.