Yesterday, WTI crude closed up $1.11/bbl to $31.45, RBOB closed up $0.0172/gal to $1.0472, and HO finished up $0.0324/gal to $0.9677. The news that had the market up yesterday was that OPEC members were talking about working together and with non-OPEC countries to reduce oversupply. This was further supported by comments out of Russia today. As soon as the API statistics were released last night, the market started to lose some of the day’s gains. The API’s released were very bearish; crude had a large build of 11.4 million barrels, with a small draw of 664,000 barrels in Cushing, OK. Gasoline built by 4.1 million barrels, and distillates drew by 630,000 barrels As of 9:15 AM ET, WTI is down $0.38/bbl, RBOB is down $0.0270/gal, and surprisingly HO is up $0.0130/gal.
The DOE statistics showed a build of crude inventories of 8.3 million barrels, with a draw of 771,000 barrels in Cushing. Gasoline had a 3.4 million barrel build, and distillates had a 4.0 million draw. The distillate draw is bullish, but some of that is due to the cold weather the U.S. finally had last week. Gas was also affected by the weather as some areas are still not drivable due to storm Jonas.
Venezuela’s President Nicolas Maduro requested an emergency OPEC meeting, so the release of the meeting’s decisions will be the next market influencer. Another thing to keep an eye on is the U.S. Federal Reserve’s decision on whether it will raise rates again in its first meeting of 2016. Weak global economic indicators make further tightening seem a bit less likely than expected.