Yesterday, WTI crude closed down $1.39 to $44.90/bbl, RBOB closed down $0.0134 to $1.3765/gal, and HO finished down $0.0186 to $1.4229/gal. The pressure on oil prices yesterday was a result of the IEA report that indicated that global oil demand growth for this year and next is lower than predicted. The report was very bearish, indicating the second half of 2017 will still be oversupplied. Additional pressure was due to a stronger U.S. dollar.
The Colonial Pipeline gasoline line is still down for repairs, but should be back up this weekend. It will take two to three weeks for supply to be back to normal. Also, in the next few weeks we could see large builds in inventories in the Gulf Coast region.
The API statistics were released last night, mixed bearish/bullish. The report showed a smaller than expected build in crude inventories of 1.4 million barrels. Cushing, OK had a 1.1 million barrel draw. Refined products were mixed; gasoline had a draw of 2.4 million barrels, while distillates had a build of 5.3 million barrels.
The DOE statistics released today at 10:30 a.m. ET were greatly anticipated. The report was very different from what the API reported last night. The DOE statistics showed a draw of 559,000 barrels in crude inventories, and Cushing had a draw of 1.2 million barrels. There were builds in both products; gasoline had a small build of 567,000 barrels and distillates had a large build of 4.6 million barrels. Since the release of the stats, the market has really dropped off. As of 11:40 a.m. WTI crude is off $0.93 to $43.97/bbl, RBOB is off $0.0285 to $1.3480/gal, and HO is down $0.0355 to $1.3874/gal.