Bullish Inventory Reports Buoy Energy Prices
September 16, 2021
The energy markets were higher in yesterday’s trading mainly being pushed higher by the overall bullish DOE inventory report. Crude stocks were reported down 6.4 million barrels which was much more than the roughly 3 million barrels estimate. Crude stock fell to the lowest levels since September 2019. Crude stocks at Cushing, Ok were also reported down by 1.103 million which also offered support to crude oil prices. Cushing crude oil stocks are at the lowest level since October 2018. Gasoline stocks were down 1.857 million barrels and distillates were down 1.689 million barrels. Refinery runs were up 0.2% at 82.1% of capacity which was less than expectations, which also added to the support to prices. Gasoline stocks are at the lowest level since November 2019 and distillates are at the lowest level since December 2019.
US crude oil production was up 100,000 BPD at 10.1 million BPD which was less than expectations and this also was supportive to prices.
Yesterday’s push higher took WTI crude oil futures, RBOB gasoline futures, and ULSD futures above recent highs giving the bulls the chance to continue the upside. The opportunities are now there for the bulls to run prices higher. Traders will see how the market performs over the next two days into the weekend to get a sense of where the market is headed.
Total propane stocks were up 717,000 barrels putting total stocks at 70.816 million barrels and last year they were at 96.141 million. Midwest stocks were up 894,000 barrels putting total stocks at 24.043 million barrels and last year there were at 27.334 million. Gulf Coast stocks were down 313,000 barrels putting total stocks at 33.158 million and last year they were at 54.949 million barrels. Another small build keeps the market concern about stocks levels heading into winter and continues to support prices as they had a big up day yesterday.