The oil complex maintained small gains yesterday, however small they were. This morning oil is waffling, unsure whether to turn back or progress higher. Crude is currently trading at $53.18, a few cents below yesterday’s closing price.
Fuel prices are also roughly flat. Diesel is trading at $1.8965, down 0.4 cents. Gasoline is $1.4431, a loss of just 0.03 cents.
The API released their weekly inventory report, which showed large across-the-board builds in oil products. Though fuel builds are normal this time of year, the market had been expecting a draw in crude stocks. The EIA’s inventory report is a day delayed this week, postponed until Thursday in observation of today’s Day of Mourning for former President George H.W. Bush.
Yesterday, two Canadian pipelines, Enbridge’s Mainline system and TransCanada’s Keystone, were struck by power outages due to severe weather. No restart timelines have been given for the Keystone pipeline, which carries 590 kbpd from Canada to the US, though the Mainline’s 1.2 MMbpd of capacity are expected to come online in short order. The outages are expected to be brief – any prolonged outage could cause Canadian crude prices to fall even lower, while bolstering WTI crude rates.