Oil Futures Slide as Fuel Demand DN, Gasoline Stocks Build
10/21 10:58 AM
Oil Futures Slide as Fuel Demand DN, Gasoline Stocks Build WASHINGTON, D.C. (DTN) -- In post-inventory trade Wednesday, crude and refined product futures on the New York Mercantile Exchange moved sharply lower as government data showed demand for refined fuels plummeted during the week-ended Oct. 16, and gasoline inventories unexpectedly increased with a draw in commercial crude oil stocks smaller than expected. Near 11:30 AM ET, the November RBOB contract plunged more than 4cts to trade near a three-week low $1.1433 gallon after inventory data from the Energy Information Administration reported a surprise 1.9 million bbl build occurred in domestic gasoline supplies and demand for the transportation fuel eroded for the second straight week through Oct. 16. At 8.289 million bpd, gasoline supplied to the U.S. market, a measure of demand, fell to the lowest weekly rate since the week-ended June 14, down nearly 14% versus a year ago. Markets have grown increasingly concerned over slowing gasoline demand during the fourth quarter amidst mounting layoffs and historically high unemployment rate. Distillates fuels stocks declined a more-than-expected 3.8 million bbl to 160.7 million bbl -- the lowest inventory since the week-ended May 17th. Demand for distillate fuels, however, declined 587,000 bpd in the reviewed week after climbing to above 4 million bpd in the previous week. Distillate output also declined, falling a second week to a 4.131 million bpd more than three-year low. NYMEX ULSD November futures dropped more than 4cts or 3% to trade at $1.1334 gallon in reaction to the data. Offsetting bearish stats for refined products, commercial crude oil supplies declined 1 million bbl to 488.1 million in the reviewed week even as refiners again reduced crude throughputs to 13.026 million bpd. Domestic refiners operated at 72.9% of their operable capacity last week, down 2% from the previous week. Domestic crude production plunged 600,000 bpd last week to average 10.5 million bpd. The December West Texas Intermediate futures declined $1.52 or 3.6% to trade at $40.26 bbl. Liubov Georges, 1.646.359.4088, liubov.georges@dtn.com, http://www.dtn.com. (c) Copyright 2020 DTN, LLC. All rights reserved.
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