The API’s Weekly Petroleum Statistics Report was released yesterday. There was a build of 4.06 million barrels on crude inventories. The API stated that for refined products, gasoline drew by 656,000 barrels and distillate drew by 2.6 million barrels. The draw in refined products is unsurprising as we are nearing the end of refinery turnaround season. Although the current market uptick is an expected reaction to this news, the real market mover today will be the EIA statistics that are set to be released at 10:30 AM today.
In the cash markets, Midwest products are still the market to watch. Even though prices have fallen in the past few days, they are still very strong. Prices for Chicago gasoline are 12.75-17cts higher than New York and the Gulf Coast respectively. This wide disparity in pricing has seen arbitrage opportunities open up hauling gasoline and diesel from Pennsylvania into Ohio. There was also a 13 cents per gallon increase in Chicago ULSD from yesterday. In the chart below, PADD 2 refinery utilization at 81.3% is up week over week but still lagging from historical levels
. *Eagle Commodities Brokers