Yesterday’s events in the Middle East between Russia and Turkey provided some strength in the market. Crude closed up $1.12/bbl to $42.87, HO closed up $0.0254/gal to $1.3997, and RBOB finished up $0.0768/gal to $1.3902. Prices of crude and both refined products are down this morning.
These are three factors driving prices lower this morning after yesterday’s gain:
1. API data released last night showed a build for all inventories.
A) Crude: +2.6 million barrels; Cushing: +1.9 million barrels
B) Distillates: +690,000 barrels
C) Gasoline: +1.4 million barrels
2. There has not been any escalation yet between Russia and Turkey after Turkey shot down a Russian jet fighter yesterday. Putin has ordered an air defense missile system to be deployed to a Russian airbase 50 miles south of the Turkey/Syria border.
3. The dollar is strengthening as the euro is weakening due to a report that the European Central Bank is considering a penalty charge on banks that may hoard cash.
The DOE statistics were released today at 10:30 AM. The report showed crude had a build of 961,000 barrels, with a build of 1.7 million barrels in Cushing, OK. There was a build of 1.0 million barrels of distillates, and a build of 2.5 million barrels of gasoline.
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-Futures market is open tomorrow, but closes early at 1PM EST and has an earlier Friday closing as well at 1:45PM EST.