Yesterday, the strength from the Norwegian strike and turmoil in Venezuela held and the market finished up across the board. WTI Crude closed up $1.52/bbl to $47.85, RBOB closed up $0.0333/gal to $1.51 and HO finished up $0.0419/gal to $1.4711. After the settle, the bullish API statistics drove up prices even more. As of 10:30 a.m. ET this morning, HO is trading up $0.0425/gal, RBOB up almost $0.01/gal and WTI is up $1.18/bbl.
The API statistics showed a draw of 3.9 million barrels in crude inventories, making it the sixth consecutive weekly draw. Cushing, OK showed a draw of 1.2 million barrels. Both refined products had a draw, with gasoline down 416,000 barrels and distillates down 832,000 barrels. The Energy Information Administration stats which were released this morning offered additional support, showing a draw of 4.1 million barrels in crude inventories which was more than the 2.4 million barrels expected. In addition, today’s report had distillates inventory decreasing by 1.8 million barrels while gasoline stockpiles rose by 1.4 million barrels. “The report is bullish with the large crude oil inventory decrease of over 4 million barrels,” said one New York based analyst. He also added that “the stepped-up demand by refiners and a plunge in imports helped create the decline.” Prior to today’s EIA stats, oil prices were already gaining momentum, with money pouring into markets as last week’s news of Great Britain's EU exit seems to have settled in.