WTI Futures Dismiss Crude Build, Gasoline Stocks a 14Wks Low


   
    

   WASHINGTON, D.C. (DTN) -- Nearest delivery oil futures on New York 
Mercantile Exchange remained range-bound in post-inventory trade Wednesday, 
with firmness developing in the front-month RBOB contract after federal data 
showed gasoline supply fell to the lowest level in 14 weeks while demand for 
motor fuel reversed sharply higher during the week ended July 3, although the 
large crude build capped the upside.

   Energy Information Administration data reported mid-morning that commercial 
crude supplies unexpectedly rose by 5.7 million bpd from the previous week to 
539.2 million barrels, about 18% above the five-year average. The large build 
was not in sync with market expectations for a 3.4 million barrels drawdown yet 
exceeded earlier estimates for a more modest build from American Petroleum 
Institute. The crude build was realized as imports jumped by 1.4 million 
barrels per day to 7.4 million bpd, while exports slowed further to below 3.0 
million bpd.

   At the key Cushing supply depot in Oklahoma, the delivery location for the 
New York Mercantile Exchange West Texas Intermediate futures contract, 
inventory moved off a

   13-week low with the first gain in four weeks, up 2.206 million bbl to 
47.788 million bbl. Front-month West Texas Intermediate futures have been stuck 
near $40 bbl for the past couple days and failed to be moved by the data to 
remain range-bound into early afternoon Wednesday.

   Possibly keeping the floor under WTI, U.S. gasoline demand spiked 205,000 
barrels per day to 8.766 million bpd, easing some fears over lost driving 
demand as coronavirus pandemic sweeps through California, Texas and Florida. 
U.S. gasoline inventories fell more-than-expected 4.8 million bbl during the 
week profiled, with analysts forecasting a more modest decrease of 1.8 million 
bbl.

   EIA data show refining capacity utilization jumped by 2% from the previous 
week to 77.5%, versus expectations of 0.3% increase. Refinery crude throughputs 
increased 314,000 bpd from the previous week to 8.766 million bpd.

   Distillate stocks, including heating oil and diesel fuel, spiked 3.1 million 
barrels to 177.3 million barrels, about 28% above the five-year average. 
Implied demand for distillates declined 759,000 bpd or 20.1% in the week ended 
July 3 to 3.019 million bpd.

   Total products supplied over the last four-week period averaged 17.8 million 
barrels a day, down by 15.1% from the same period last year.

   Near 11:30 AM ET, NYMEX August WTI futures traded flat near $40.60 bbl, 
while August ULSD futures moved marginally lower to near $1.2341 gallon and 
front-month RBOB contact advanced 1.10cts to $1.2867 gallon.

    

    

   Liubov Georges, 1.646.359.4088, liubov.georges@dtn.com, http://www.dtn.com.

    

    




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