Yesterday, WTI crude closed up $0.16/bbl to $48.23, RBOB closed up $0.0218/gal to $1.6563, and HO finished down $0.0021/gal to $1.7406. This morning, oil prices are trading slightly up after the API statistics last night, OPEC and demand rhetoric, and the weakened U.S. dollar. The API statistics were exactly what were expected after Hurricane Harvey- a build in crude inventories and draws in refined products. Crude built by 6.2 million barrels, 1.3 million barrels from Cushing, OK. Gasoline drew by a surprising 7.9 million barrels, and distillates drew 1.8 million barrels. News surrounding the recent Hurricanes have been the main focus as of recent, but yesterday the OPEC rhetoric started again. OPEC reduced output in August by 79,000 barrels per day to 32.76 million barrels per day. Another bullish piece of news from yesterday was the IEA released increased demand forecast for the rest of 2017 and into 2018.
The DOE statistics released today at 10:30 a.m. ET were even more bullish than the API statistics. The DOEs showed crude inventories built 5.9 million barrels, with a build in Cushing of 1.0 million barrels. It is no surprise that in PADD III (Gulf Coast) crude inventories built 9.9 million barrels. Gasoline drew 8.4 million barrels, and distillates drew 3.2 million barrels. After these bullish numbers, the market rallied across the board. As of 11:20 a.m. ET, WTI is up $0.75/bbl, RBOB is up $0.0080/gal, and HO is up $0.0260/gal.
Things to ponder for next week:
Demand destruction from storm
Shift in supply due to GC outages/exports to Central and South America
Pipeline schedules/vessels back to normal