Yesterday was the last trading session of the month for the November (X) futures and all products are now trading prompt month December (Z) futures. WTI crude closed up $0.23/bbl to $54.38, Dec HO finished up $0.0043/gal to $1.8805, and Dec RBOB closed up $0.0193/gal to $1.7325. The market continues to trade higher into today’s trading session. The API statistics last night were extremely bullish with large draws reported across the board. Crude inventories drew 5.1 million barrels, distillates drew 3.1 million barrels, and gasoline drew 7.7 million barrels. Also supporting prices is the continued rhetoric around OPEC extending production cuts until the end of 2018. Rebalancing rhetoric is likely to continue all the way up till the official meeting towards the end of this month in Vienna.
The DOE statistics released this morning showed draws across the board similar to the APIs. However, the draws were considerably smaller. The DOEs reported a draw of 2.4 million barrels in crude inventories, a draw of 320,000 barrels in distillates, and a 4.0 million barrel draw in gasoline. After the release of the DOEs, the knee jerk reaction had turned HO negative on the day but has since rallied back to flat as of 11:15 am EST. RBOB, with its larger than expected draws, remains higher by almost $0.03.
The Chicago cash market continues to be a bit volatile due to the Explorer Pipeline leak and the turnaround season in the refinery industry. Platts showed ULSD being $0.0925 over Dec HO and CBOB $0.40 over Dec RBOB. It is interesting to note that OPIS reported ULSD $0.14 over and Argus $0.11 over. Normally, these indexes are closer together.
Important resistance levels to watch today for the uptrend in prices to continue:
WTI Crude: $54.94
RBOB: $1.7525 *most important