Yesterday, WTI crude closed down $0.52/bbl to $48.85, HO closed down $0.0107/gal to $1.5167 and RBOB finished up $0.0102/gal to $1.5929. There was not much new news influencing the market yesterday; the stronger dollar and rumors that the Niger Delta Avengers and Nigerian government have agreed on a one-month ceasefire put some pressure on the market.
The API statistics were released last night with much larger draws than expected. The API report showed a 5.2 million draw in crude inventories, 1.3 million barrels of the draw occurred in Cushing, OK. It showed distillates had a draw of 1.7 million barrels and gasoline a draw of 1.5 million barrels. Even with the very bullish APIs, there was not much reaction this morning in the market.
The DOE statistics released today at 10:30 a.m. ET were very different than what the APIs reported. The DOEs showed a draw in crude of only 917,000 gallons; however, for Cushing there was a 1.3 million barrel draw as reported in the APIs. Both refined products actually had a small build; distillates built 151,000 gallons and gasoline built 627,000 gallons. Since the release of the DOEs, prices have reversed across the board and are trading in the red.
Brexit continues to be the piece of news everyone is waiting for. The vote is tomorrow and the question if Britain will stay or leave the European Union will be answered. If the vote is to stay, it will most likely influence prices to be unchanged or a little higher. And if the vote is Britain will leave the European Union then it is expected to lower prices in the short term.