Another huge loss for oil prices yesterday, with crude falling nearly $3/bbl (4%) at the end of the day in response to the API’s reported crude build. Markets have been taking a huge hit as crudes stocks return to seasonal trends. Last year, crude stocks declined during the fall despite lower refinery utilization of that crude. That contrast makes this year’s seasonal build seem particularly tough. WTI crude is trading at $66.99 this morning, up 56 cents from yesterday’s close.
Fuel prices also posted 7-cent losses yesterday in sympathy with lower crude prices, despite stock draws for both products. This morning, diesel prices are $2.2533, up 0.5 cents from Tuesday’s close. Gasoline prices are currently $1.8412, picking up 0.4 cents.
The API’s inventory data showed an inventory build that is nearly triple the market’s expectation – 9.9 million barrels versus 3.7 million barrels expected. It’s normal to see some pretty large builds during this time of year as refiners go offline, but 9.9 million barrels is even seasonally above average.
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