The EIA’s Weekly Petroleum Status Report was released yesterday. There was a build of 2.8 million barrels on crude inventories. However, crude inventories at Cushing, Okla., drew by 200,000 barrels.The EIA stated that for refined products, gasoline drew by 3.3 million barrels and distillate drew by 1.3 million barrels. PADD2 (Midwest) distillate inventories drew by 716,000 barrels last week, hitting a new 2015 low of 26.551 million barrels.
The EIA report estimated that domestic crude oil production hit 9.16 million barrels per day last week. This number continues to climb even though crude oil output has declined by around 500,000 barrels from its peak earlier this year. The Gulf Coast continues to establish records for crude oil in storage. Last week’s levels were reported at 251.7 million barrels while total inventories are within around 10 million barrels of the record that was set earlier in 2015. This is primarily due to heavy fall turnarounds in PADD3, thus cutting crude demand.
Today the market is relatively flat across the board. We are continuing to watch developments in Syria and global economics for direction in the market. Right now, a strong U.S. dollar and high crude inventories are keeping prices down overall.