Yesterday, WTI crude closed up $0.01/bbl to $51.88, RBOB closed up $0.0132/gal to $1.6301, and HO finished down $0.0031/gal to $1.8098. In afterhours trading yesterday, the crude oil markets initially received some support from the API statistics. The APIs showed a large draw in crude inventories of 7.1 million barrels. Of that draw, about 200,000 barrels came from Cushing, OK. Refined products were slightly bearish. Gasoline built 1.9 million barrels and distillates built 1.6 million barrels. This morning the market has been trading relatively flat to slightly higher, meaning the API statistics are being muted as everyone awaits the DOE statistics due out today at 10:30 a.m. EST.
Aside from the weekly inventory statistics, the other main headline for today is around the OPEC/non-OPEC production cuts. There is rhetoric around the group extending production cuts past the original plan of March 2018 until the end of 2018. The next OPEC meeting is in Vienna on November 30th, where this topic will be discussed in more detail.
The DOE statistics did not stray too far from the API report; a large draw in crude and slight builds in refined products. The DOEs reported a 5.7 million barrel draw in crude inventories, a build in gasoline of 908,000 barrels, and a build in distillates of 528,000 barrels. PADD III numbers stand out this week; a really large draw in crude and therefore builds in products-see below. Crude runs decreased by 819,000 barrels per day, and refinery utilization fell by 4.7%. Since the release of the statistics, oil prices have dropped. RBOB is down about $0.01/gal and HO is down almost $0.02/gal.