Crude prices are trading at 17-year lows. Quarantines and social isolation practices to inhibit the spread of the coronavirus have put extreme downward pressure on crude and products demand and prices. Surprisingly, the API reported draws in crude and products, but this bullish news was overshadowed by coronavirus demand destruction and Saudi plans to flood the market.
The API’s data last night:
The API reported a surprise draw for crude of 0.4 MMbbls versus an expected build of 3.3 MMbbls. The API reported distillates had a larger-than-expected draw and gasoline also had a larger-than-expected draw. The EIA will report numbers later this morning.
For the past several weeks, Florida supply has tightened due to Jones Act Vessel’s experiencing delays along the Houston, Louisiana and Pascagoula refinery origin ports. Dense fog has caused delays along the Houston ship channel, which allows vessels in and out from the Gulf of Mexico to resupply at refinery origin in Houston and Pasadena. Because Florida does not have a pipeline to bring product into the state, the dependency of consistent vessel turns is crucial to the inventory levels at Florida terminals. Mansfield is working closely with refineries and keeping an eye on the situation to maintain adequate supply for Florida customers.
Crude prices are down this morning. WTI Crude is trading at $23.99, a loss of $2.96.
Fuel is down in early trading this morning. Diesel is trading at $0.9994, a loss of 3.6 cents. Gasoline is trading at $0.6743, a loss of 3.7 cents.