Yesterday, WTI crude closed down $0.55 to $39.51/bbl, RBOB closed up $0.0080 to $ 1.3116/gal, and HO closed up $0.0011 to $1.2590/gal. These are small changes from Monday’s settle, however yesterday included rather large intra-day price movements. Tuesday’s trading session began with a rally in futures prices due to the U.S dollar dropping to a six-week low, but ran out of steam by afternoon. It is also important to mention that this was the first time WTI crude closed below $40/bbl since April 2016.
The API statistics reported a draw of 1.3 million barrels in crude, a draw in gasoline of 450,000 barrels, and a build in distillates of 539,000 barrels. However, the DOE statistics that came out today at 10:30 a.m. ET did not match. The DOEs reported a build in crude inventories of 1.4 million barrels. The crude statistic that seems to have the greatest impact on our region is bullish with a draw in Cushing of 1.1 million barrels. The report showed a draw of 3.3 million barrels in gasoline, and a build of 1.2 million barrels in distillates. Overall, these stats are bullish and the market remains up. As of 12:15 p.m. ET, WTI is up $1.24/bbl, HO is up $0.0320/gal, and RBOB is up $0.0350/gal.