Inventory Report Causes Prices to Plummet
The oil complex is headed lower this morning after the API reported builds in both crude and Cushing stocks. Crude traded mostly flat during yesterday’s session before closing the day 38 cents lower. During some after-hours trading, crude lost an additional 42 cents. This morning, crude is continuing the downward trend, trading down 65 cents at $66.39.
Fuel prices are mixed this morning, reflecting the inventory results from the API report yesterday. Diesel saw a penny-and-a-half loss before closing yesterday and continued to trade down after hours. On the other hand, gasoline picked up 66 points during the trading session, but lost those gains and more after the market closed. This morning diesel has given up another 1.3 cents and is currently trading at $2.1151. Although overnight losses have not be recouped, gasoline is trading up slightly this morning at $2.0352.
The API report was bearish for markets yesterday. Crude built by 3.7 MMbbls, contradicting the market’s expectation of a draw. Gasoline drew while diesel built, bringing products to a net build of .3 MMbbls for the week. Cushing stocks were the biggest contributor to yesterday’s price decline. Cushing stocks built by 1.6 MMbbls. If confirmed by the EIA later this morning, this will be the first build since May.
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