Despite a supportive EIA report, markets just couldn’t stop the downward push, leading to an afternoon decline yesterday that brought prices just shy of dropping below $65. This is now the third time prices have risen above $70 and fallen back to the $65 range. This morning crude is trading at $64.93, down another 38 cents since yesterday.
Fuel prices showed mixed results yesterday, with gasoline prices taking a 3.8 cent beating while diesel prices remained positive. This morning, the products are both lower following the expiration of the November futures contract and the roll to December futures. Diesel prices are trading at $2.2395, down 1.2 cents from yesterday’s close. Gasoline prices are also lower at $1.7414, down 1.0 cents.
The EIA released their weekly inventory report, which didn’t do much to sway the market. Crude’s inventory build came in below market expectations, while gasoline and diesel draws were both larger than expected. While the report would typically have caused higher prices, markets just didn’t seem focused on the fundamental news. Refinery utilization crept a bit higher, up to 89.4% – though the Gulf Coast, which houses most of America’s refining capacity, is back to 96.5% already.