Yesterday, the market continued upwards as WTI finished up $0.84 to $46.58/bbl, RBOB finished up $0.0219 to $1.4226/gal, and HO closed up $0.0114 to $1.4613/gal. The strength in prices is still a result of talks surrounding the production freeze, along with a weaker dollar.
The API statistics released last night showed:
Crude inventories: -1 million barrels; Cushing: -680,000 barrels
Gasoline inventories: +2.2 million barrels
Distillate inventories: +2.4 million barrels
The DOE statistics released this morning showed:
Crude inventories: -2.5 million barrels; Cushing: -700,000 barrels
Gasoline inventories: -2.7 million barrels
Distillate inventories: +1.9 million barrels
AS of 11:40 a.m. ET, WTI is down $0.40/bbl, HO is up $0.0020/gal and RBOB is up $0.0125/gal. The market is reacting to the DOE statistics. Even though there was a draw in crude inventories, most of that took place in PADD 5 (West Coast).
Another piece of notable news is that the 2017 Farmers’ Almanac is now available and is forewarning of a very cold winter over the Northern Plains, Great Lakes, Midwest, Ohio Valley, Middle Atlantic, Northeast and New England this year. Last year, heating oil demand was down due to the abnormally mild winter, but hopefully not this year because the frigid winter is back! Farmers’ Almanac Editor Peter Geiger stated, “Cold Man Winter did seem to be on vacation last year thanks to a very strong El Nino, but this year he’s back…”