In FN’s new “What’s the Word” segment, we’ll learn from Mansfield’s Supply Team what’s driving fuel prices right now. Today’s FUELSNews commentary comes from Mansfield Supply SVP Andy Milton, writing about this week’s continued trend of falling US fuel inventories.
Even with refinery utilization bouncing higher again, diesel has yet another inventory draw – although not as much as expected.
Maybe more worrisome is the fact that gasoline had a significant draw. Since we didn’t get a chance to build gas inventories as we do normally (see the chart below), this may signal a gasoline issue later this summer. I would expect as we get into the driving season, inventories will attract more attention if the gas draws continue – at least until higher prices curb demand.
Finally, below is a visual of the diesel inventory status and the days of supply for diesel. These charts are fairly bullish, and the market reacted accordingly yesterday with gasoline futures trading much higher.