The API’s Weekly Petroleum Status Report was released yesterday. There was a build of 9.35 million barrels on crude inventories. According to the API, this is the largest weekly jump in inventories since April. The API stated that for refined products, gasoline drew by 5 million barrels and distillate drew by 2.7 million barrels. The weekly EIA statistics come out today due to the Columbus Day holiday.
It has become apparent that domestic supply has vastly outpaced demand in most markets. In the midst of turnaround season, additional news such as downtime at fluid catalytic cracking (FCC) unit and alkylate unit at Monroe Energy's 185,000-b/d Trainer refinery in Pennsylvania had no impact on futures prices. The global market continues to share the same problem. According to Goldman Sachs, 2016 will see global stocks build by 400,000 bpd and there is also the potential for oil prices to collapse to the level of production costs if the oversupply breaches logistical and storage capacity.
Today it seems that the market is sitting idle waiting to see if the EIA echoes the API’s data. The technical levels have yet to be tested today. According to the oil broker PVM, as the day progresses look for RBOB to be the leading indicator for the market movement. RBOB closing under the support level of $1.3039 would be a bearish technical indicator.