Yesterday, the market was down on bearish DOE inventory statistics. WTI closed down $1.00 to $41.92/bbl, RBOB closed down $0.0238 to $1.3214/gal, and HO finished down $0.0310 to $1.2950/gal. After nine consecutive weeks of draws in crude inventories, the DOEs showed a build of 1.7 million barrels last week and Cushing accounted for 1.1 million barrels of the build. The DOEs reported a draw of 780,000 barrels in distillate inventories, and a build of 452,000 barrels in gasoline inventories. Refinery utilization was basically unchanged with a drop of .8% to 92.4%.
The oversupply in crude oil is nothing new, but right now gasoline Inventories are at near-record high levels. Last week inventories hit 241 million barrels, almost 12% higher than last year. Considering we’re in the heart of the busy summer driving season, it was very surprising to see continued builds. Refineries are expected to continue to run at high levels, which could result in more increases.
There is not much new news out there today and the market is pretty flat as a result. As of 10:20 a.m. ET, HO is down $.0050, RBOB is up $.0060, and WTI is down $0.30.