On Tuesday, WTI crude closed slightly higher as it bounced from Monday’s lows. Rising coronavirus cases in Europe and renewed lockdowns in the UK have raised demand fears once again. Libya returning supply to the market is causing additional worries of adding to the supply glut. Markets are trading up slightly this morning on mixed inventory news from the API.
The US Department of Transportation reported yesterday that US motorists drove 11% fewer miles in July than during the same time last year. Drivers drove 262.4 billion miles in July which was 33.2 billion miles fewer than in July a year ago. It was, however, a 4% increase from the month prior. Summer is usually the peak driving season in the US but due to the lockdowns, people are taking fewer road trips. In addition, work from home policies are keeping people off the roads this season.
The API’s data last night:
The API reported a surprise build for crude of 0.7 MMbbls versus an expected draw of 2.3 MMbbls. At Cushing, stocks increased by 0.3 MMbbls. The API reported that distillates had a decrease in stocks. Gasoline inventories had a surprise decrease. The EIA will report numbers later this morning.
Crude prices are up this morning. WTI Crude is trading at $39.95, a gain of 15 cents.
Fuel is up in early trading this morning. Diesel is trading at $1.1070, a gain of 1.1 cents. Gasoline is trading at $1.1843, an increase of 2.0 cents.