Happy New Years! FUELSNews will resume publications on Wednesday, January 2. Have a Safe and Happy Holidays!
WTI crude is trading quietly this following, not treading far from Thursday’s close. Crude is currently trading at $45.28, up 67 cents (1.5%) from yesterday’s close.
Fuel prices are mixed this afternoon following the EIA’s report. Diesel prices are down 0.6 cents to $1.6722. Gasoline prices are $1.3114, up 0.7 cents.
Yesterday’s API report painted a very bearish picture, with crude stocks rising almost 7 million barrels…but the EIA’s data showed a more mild picture. Still, the EIA’s data disappointed relative to market expectations. Crude stocks fell gently, gasoline had a sizable build, and diesel stocks were virtually unmoved.
What the data hides is that all of crude’s draw came from the Gulf Coast via exports; in all other regions, crude stocks rose. The opposite was true for diesel – all regions saw distillate draws except the West Coast, where imports were above their normal levels. Refinery utilization ticked down a bit but remains strong for this time of year – keeping steady downward pressure on crude stocks while boosting fuel inventories. The market’s initial reaction to the EIA’s report was bearish, but the losses have turned to gains later in the day for everything except diesel.