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
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
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, firstname.lastname@example.org, http://www.dtn.com
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