Prices are trading mixed across the oil complex this morning. Crude traded sharply lower yesterday, losing $1.31 to close the day at its lowest price in 2 weeks. A strong US dollar combined with builds reported by the API in both crude and Cushing inventories put downward pressure on crude during yesterday’s trading session. This morning, crude is trading mostly flat, but remaining in positive territory at $67.28.
Refined fuels are tracking lower this morning. Diesel prices lost nearly 5 cents on Tuesday, despite a large inventory draw reported by the API. Gasoline also took a large fall yesterday, losing almost 4.5 cents. This morning diesel is trading mostly flat, down just 24 points to trade at $2.0973. Gasoline has declined more drastically than diesel, moving 1.62 cents lower this morning to trade at $2.0714.
The API reported mixed results yesterday. Crude inventories saw a build of 3.4 MMbbls, a much larger build than the 0.7 expected by the market. Product inventories moved in different directions with gasoline building by 1.6MMbbls, while diesel drew by a large 4.1 MMbbls. The market is anticipating the EIA report that will be released later this morning. If the EIA confirms the build in crude, prices will likely remain bearish.