Yesterday the market was relatively flat; WTI finished up $0.32 to $53.40/bbl, ROB finished down $0.0004 to $1.7577/gal, and HO closed up $0.0033 to $1.6506/gal. The market is up across the board this morning due to the bullish API statistics released last night as well as the rhetoric around OPEC.
The API statistics showed a draw in crude inventories of 1.3 million barrels, however Cushing showed a build of 358,000 barrels. Both refined products had a larger than anticipated draw, gasoline 3.7 million barrels, and distillates 1.6 million barrels. The forecast for products was only a draw of 1.7 million barrels in gasoline inventories and an 885,000 barrel draw in distillate inventories. The market is also getting some support from indication that OPEC will continue production cuts for another six months. The group is to meet in Vienna on May 25th to discuss the agreement to extend the deal. This news is coming after March’s production data was released showing that OPEC’s compliance was at 104% for the month.
The DOE statistics were released today at 10:30 a.m. and they were even more bullish than the APIs. The DOEs showed a draw of 2.2 million barrels in crude inventories, with only a small build in Cushing of 276,000 barrels. Gasoline showed a draw of 3.0 million barrels and distillates a draw of 2.2 million barrels. However, even though the stats seem bullish, oil prices began trading lower after the release of the DOEs. As of 11:15 a.m. ET, WTI is down about $0.10/bbl, HO is up only about $.0050/gal, and RBOB is down almost $0.01/gal. Even with the draw in crude, we are still at all-time highs on inventories which could be influencing the market.