Building crude stocks leave the market mixed
March 7, 2019
The DOE inventory report said that crude oil stocks were up a big 7.069 million barrels. Cushing, Ok crude oil stocks were up 873,000 barrels. Gasoline stocks were down 4.227 million barrels and distillate stocks were down 2.393 million barrels. Refinery Runs were up 0.4% to 87.5% of capacity.
The market was mixed after the report was released as the big build in crude hung over the market. The products declined more than expected sending a mixed message for the market to shot out. This market appears to be stuck again. Both crude and ULSD are still in their trading ranges and RBOB is trying to push out of its range over the last few days but looks like it has lost some momentum. The market continue to try and gauge the overall health of the global economy and how that plays against the supplies being taken out of the market by sanctions and OPEC+ production cuts. The ongoing issue of how supply and demand shake out is what many are trying to determine to estimate the longer term impact on prices.
Propane inventories declined 2.039 million barrels. Midwest stocks were down 1.771 million barrels and Gulf stocks were up 378,000 barrels.
Holly Frontier at their refinery in El Dorado, Kansas had an explosion and fire which help to prop up group basis values yesterday.
EIA reported that US gasoline product supplier (implied demand) was up 80,000 bpd to a total of 9.062 million bpd. US gasoline demand is now down by 2% over the past 4-weeks versus last year and down by 0.2% based upon a cumulative daily average versus last year.
EIA reported that total distillate product supplied rose by 68,000 bpd up to a total of 4.145 million bpd. Distillate demand is now up by 0.3% over the past 4-weeks versus last year and up by 2.6% based upon a cumulative daily average versus last year.