Yesterday, crude closed down $1.07/bbl to $40.67, RBOB closed down $0.0006/gal to $1.2380, and HO finished down $0.0170/gal to $1.3681. Currently, refined products are trading up between $0.01 and $0.03/gal.
API data released last night showed a draw in crude of 480,000 barrels, however, Cushing had a 1.3 million barrel build. There was a draw in distillates of 1.5 million barrels, and a small build in gasoline of 240,000 barrels. Refinery utilization is at 89.3% capacity nationally.
The reports of falling stockpiles of crude, as well as the geopolitical news regarding France provides support for the gains in the market this morning. This is most likely short term and the market in the longer view will be considered bearish as long as there is global oversupply. The EIA stated there is a record 3 billion barrels of crude and oil products stored in tanks worldwide. This amount of oil in storage is comparable to a month's worth of global oil consumption.
The DOE statistics were released today at 10:30 AM. The report showed crude had a small build of 252,000 barrels, with a build of 1.5 million barrels in Cushing. There was a draw of 791,000 million barrels of distillates, and a build of 1 million barrels of gasoline. Total refinery utilization is up 0.8% to 90.3%; PADD 1 is at 92.3% and PADD II is at 88%. The increases in refinery utilization are due to refinery turnarounds finally coming to an end. The release of the DOE stats has reversed the morning gains and spreads forward are weakening on the high inventory levels reported.