WTI Crude is at its lowest price level since the 2008 recession, but still remains $5/bbl higher than the lows at the end of 2008. This morning WTI crude hit $39.03/bbl but it will be interesting to see what continues to happen as we head toward the DOE statistics release. The market has been pretty much unchanged since the API reported a surprising 7.3 million bbl draw in crude oil stocks and a build on both gasoline and distillates inventories of 710,000 barrels and 1.4 million barrels respectively. The DOE stats reported a draw of 5.5 million barrels of crude oil inventory, a build of 1.6 million barrels of gasoline inventory and—matching the API’s report—a build of 1.4 million barrels of distillate inventory. Since the release of these statistics, we have seen a significant drop in prices of refined products and crude. Below is a historical graph of WTI prices displayed over a 10 year period.
In refinery news, BP’s Whiting, IN refinery has been reportedly restarted. This has happened much faster than previously expected and will add back the 240,000 bpd of crude consumption to an already oversupplied market.
Tropical storm Erika needs to be kept in mind over the next few days as it is projected to become a weak hurricane. Below are the wind speed probabilities of Erika from NOAA, indicating the southeastern US should be on alert into this weekend.