Supply, Demand & Exports

By: Daniel Guttman / December 10, 2015

  1. EIA released its weekly statistics yesterday. The report showed a crude draw of 3.6 million barrels, but a slight build of 423,000 barrels in Cushing. The large draw seems to be a result of a 7.3 million barrel decline in Gulf Coast (PADD 3) inventories. Imports also fell (in PADD 3) by 650,000 barrels. This is the first decline of US crude oil inventories since September. Refined products saw a build of 5 million barrels of distillates, all in PADDs 2, 3 & 5. PADD 1 (NYH) actually drew 260,000 barrels (a historic diesel draw for this time of year). On gas there was a build of 784,000 barrels. 
  1. The EIA forecasted gasoline demand at 9.42 million barrels per day, the highest reported December gasoline demand has been since 2006. According to OPIS, “market watchers believe that increase in demand could be due to the replenishment of inventories following the Thanksgiving holiday. Many analysts expect a poor implied gasoline demand number during next week's EIA data release.” Conversely, distillate demand last week was reported at 3.268 million barrels per day. The distillate demand is now at its lowest number since January of this year, stemming from the unusually warm winter experienced in the Northeast. 
  1. New York Harbor has begun to see exports of distillate to Europe. It has been noted that several refiners have been booking cargos this past week. We have not seen this level of distillate exports for PADD 1 in years. The arbitrage between HO and European Gasoil had reached a premium of ten cents for 10 days, the timing of which could not be more perfect considering the extremely low demand numbers in the Northeast.  It will be interesting to see if the exported volume will help bring down the vast oversupply in the Northeast. 
  1. Colonial pipeline has frozen shipments on line 3 from Greensboro to Linden through year end. This will strengthen all NYMEX products.


Categories: Daily Market Update

Daniel Guttman

Written by

Daniel Guttman

With a background in wholesale and commercial sales as well as pipeline scheduling, Daniel is currently the Manager, Business Development in the Card Access Fuels department. He is tasked to find new and innovative solutions to increase sales opportunities for the sales team while managing and evaluating internal department processes. He assists with day to day personnel management, customer data analysis, as well as the daily Pacific Pride inventory and pricing direction.

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