Crude Stocks Built 3x More than Expected

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.

Weekly Round-Up

CNBC: Two ‘unstable’ OPEC nations may decide whether oil takes another run at $100 a barrel

Reuters: Rising U.S. shale exports turn WTI into 24-hour benchmark

Financial Times: US seeks late change to sulphur-cap fuel rules

Fleet Owner: State of private fleets in 2018

EIA: Iran has produced and exported less crude oil since sanctions announcement

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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