Yesterday, WTI closed down $0.04/bbl to $47.55, RBOB finished up $0.0028/gal to $1.5795, and Heating Oil finished down $0.0061/gal to $1.5996. With headlines on the lighter side, one thing to note was the stronger U.S. Dollar putting some pressure on oil prices (see chart below). Also, the normal rhetoric around global oversupply, paired with concerns over demand, was a continuing factor yesterday.
The API statistics, released last night, showed a draw in crude inventories of 9.2 million barrels, the biggest draw since September of 2016. Gasoline showed a small build of 301,000 barrels, and distillates drew 2.2 million barrels. The markets have been trading fairly flat after the API report. This depicts a couple of things. First, technicals, not fundamentals, have been driving the market as of late. Second, the API statistics seem to be overlooked as people await the DOE statistics the following day.
The DOE statistics did show a large draw of 8.9 million barrels in crude inventories as well. PADD III accounted for 7.2 million barrels of that draw, and Cushing, OK built 678,000 barrels. Refined products were on the bearish side. Gasoline built 22,000 barrels and distillates built 702,000 barrels. As of 11:20 a.m. EST, energy prices are off across the board. Even the large draw in crude inventories could not give the market a boost. Some important technical levels to watch are $1.6015 for Heating Oil and $1.5846 for RBOB. If the market should settle below these values, it could signal continued weakness.