Yesterday, crude closed up $1.76/bbl to $47.90, RBOB closed up $0.0702/gal to $1.4455 and HO finished up $0.0591/gal to $1.5660. The futures market remains relatively flat while waiting for the release of the DOE statistics report.
Prices reacted yesterday to multiple pieces of news. The Colonial Pipeline suspended a portion of operations due to flooding in Texas. There are supply disruptions in both Brazil and Libya. There is a strike at Brazil’s state oil producer Petrobras, which is the world’s ninth largest oil producer. Production is estimated to be cut by 13%. In Libya, there is a closure of the oil export terminal at the eastern port of Zueitina and they have declared force majeure.
API data released last night showed a 500,000 barrel draw in crude inventories in Cushing, OK, however U.S. crude inventories built by 2.8 million barrels. There was a draw in gasoline of 3 million barrels, and a draw in distillates of 230,000 barrels. Refinery utilization is up 0.9% from last week to 88.7% capacity. The DOE statistics will be released at 10:30 AM today.
Technically, the market pushed through some key moving averages yesterday. Bullish stats today could push the futures market higher in the short term.