The API’s Weekly Petroleum Status Report was released yesterday. They reported a build of 2.1 million bbls on crude inventories. The API stated that for refined products, gasoline built by 700,000 bbls and distillate built by 80,000 bbls. The API also stated that Cushing, OK crude inventories drew by 1.15 million bbls. The API figures also reported U.S. refinery utilization rates declined by more than 2 percent since last week. The EIA Weekly Petroleum Status Report will be released later today at 11am due to the Labor Day holiday weekend.
October NYMEX ultra-low sulfur diesel futures contract settled yesterday at $1.5386/gal, a decline of $0.0552. October NYMEX RBOB futures closed yesterday at $1.3597/gal, a decline of $0.0424. As of 0730 today the October NYMEX ultra-low-sulfur diesel futures contract has rebounded a penny per gallon and the October NYMEX RBOB has increased by over a penny-and-a-half per gallon.
As the summer driving season ends, U.S. gasoline prices have fallen to the lowest level for this time of year since 2004. Since last year at this time gas prices at the pump have dropped by about $1.02/gal and diesel prices have dropped $1.28/gal. According to Reuters, if this trend of falling prices continues we could see average pump prices around $2/gal. According to the EIA, gasoline consumption averaged 9.5 million bpd in August, the highest level since 2007 and up 5% compared to 2014.