Around The Barrel – Crude Oil Draws -5.503Mbbls, Gasoline and Distillate Both Build Over +10.090Mbbls to Close Out 2023

EIA reported a crude draw of -5.503Mbbls following last week’s -6.911Mbbls. Gasoline stocks rose +10.9M after they fell -0.575Mbbls last week and distillate rose +10.090Mbbls after they rose +0.833Mbbls in inventories last week. Crude oil inventories in the Gulf Coast often fall sharply in December. At the end of December each year, parts of Texas and Louisiana, where significant volumes of crude oil are stored, assess ad valorem taxes (meaning, according to value) on end-of-year crude oil inventories. The WTI … Continue reading “Around The Barrel – Crude Oil Draws -5.503Mbbls, Gasoline and Distillate Both Build Over +10.090Mbbls to Close Out 2023”

Around The Barrel – Crude Oil Draws -6911Mbbls with Year End Tax Adjustments

EIA reported a crude draw of -6.911Mbbls. Gasoline stocks fell -0.575Mbbls and distillate rose +0.833Mbbls in inventories. Crude oil inventories in the Gulf Coast often fall sharply in December. At the end of December each year, parts of Texas and Louisiana, where significant volumes of crude oil are stored, assess ad valorem taxes (meaning, according to value) on end-of-year crude oil inventories. The WTI Futures Hub at Cushing stocks rose again with a build of +1.508Mbbls. Domestic US oil production … Continue reading “Around The Barrel – Crude Oil Draws -6911Mbbls with Year End Tax Adjustments”

Around The Barrel – U.S. Crude Oil, Gasoline and Distillate Stocks all Build as US Production Hits New All Time High

EIA reported a crude build +2.909Mbbls. Gasoline stocks rose +2.710Mbbls and distillate rose +1.485Mbbls in inventories. Refinery utilization rose +2.20% to 91.5%. The WTI Futures Hub at Cushing stocks rose again with a build of +1.686MMbbls. Domestic US oil production figures rose to a new all-time high at 13.3mbpd. Oil prices ahead of storage reports hit a two-week high over $75 fueled by focus on the Red Sea’s geopolitical tension. Defiant Houthi rebels attacked & disrupted global trade, prompting the … Continue reading “Around The Barrel – U.S. Crude Oil, Gasoline and Distillate Stocks all Build as US Production Hits New All Time High”

IEA says Record US Supply Squeezing Saudis Out of Prime Markets

Paris-based International Energy Agency IEA in its latest monthly Oil Market Report Tuesday cut fourth-quarter demand growth by 400,000 barrels a day. The agency also said record US crude oil supply is squeezing Saudi Arabia out of prime markets. This is in line with the angst between the cartel members at the recent OPEC+ meeting and the failure to push oil prices significantly higher or see US production fall. Global oil demand growth is slowing sharply as economic activity weakens … Continue reading “IEA says Record US Supply Squeezing Saudis Out of Prime Markets”

Around The Barrel – U.S. Crude Oil Stocks Fell -4258Mbbls While Cushing Showed a Build of +1.228Mbbls

This week EIA reported a crude draw of -4258Mbbls. Gasoline stocks rose +0.409Mbbls and distillate rose +1.494M Mbbls in inventories. Refinery utilization fell -0.30% to 89.3%. The WTI Futures Hub at Cushing stocks bounced off the lowest level since October 2014 with a build of +1.228Mbbls. Domestic US oil production figures was unchanged just off an all-time high at 13.1mbpd. Oil prices had continued to slide with WTI crude futures losing nearly 4% ahead of storage reports, testing its lowest … Continue reading “Around The Barrel – U.S. Crude Oil Stocks Fell -4258Mbbls While Cushing Showed a Build of +1.228Mbbls”

Around The Barrel – Crude Oil Draws -4.633Mbbls, But Doesn’t Offset Products Storage Builds

Oil prices continue to fall to test the large option barrier at $70 WTI Prompt futures after the week’s storage report. Prices having declined for the sixth straight week at settle, the longest since 2021 despite the geopolitical risks in the Middle East. EIA reported a crude draw of -4.633Mbbls. Gasoline stocks rose +5.420Mbbls and distillate rose +1.267M Mbbls in inventories. Refinery utilization rose +0.7% to 89.6%. The WTI Futures Hub at Cushing stocks bounce off the lowest level since … Continue reading “Around The Barrel – Crude Oil Draws -4.633Mbbls, But Doesn’t Offset Products Storage Builds”

Around The Barrel – Large Gasoline and Distillate Builds as Refineries Come Out of Maintenance.

EIA reported a crude build of $1.854M which followed last week’s +8.701Mbbls to the highest since July with no major reductions in fuel stocks to counter as more refineries come out of maintenance. Crude export and production held steady with gasoline demand (4-wk avg.) declining by 0.1mb/d to 8.8 mb/d.. Gasoline stocks rose +1.764Mbbls and distillate rose +5.217M Mbbls in inventories. Refinery utilization rose +2.80% to 88.9%. The WTI Futures Hub at Cushing stocks bounce off the lowest level since … Continue reading “Around The Barrel – Large Gasoline and Distillate Builds as Refineries Come Out of Maintenance.”

Around The Barrel – Crude Oil Storage Builds Another +8.701Mbbls, Back to July Highs

EIA reported a crude build of +8.701Mbbls to the highest since July with no major reductions in fuel stocks to counter. The WTI Futures Hub at Cushing stocks rose off the lowest level since October 2014 with a build of +0.858Mbbls. Domestic US oil production figures was unchanged at an all-time high 13.2mbpd. Gasoline stocks rose +0.749Mbbls and distillate fell -1.018Mbbls in inventories. Refinery utilization rose 0.90% to 86.1%. A 0.5mb/d drop in mogas demand lowers the 4-wk avg. by … Continue reading “Around The Barrel – Crude Oil Storage Builds Another +8.701Mbbls, Back to July Highs”

Around The Barrel – Crude Oil Futures Pressured by More Builds in US Crude Stocks

Crude oil futures US crude futures slide continues with WTI Crude oil settling at $76.66 just above lows, down $1.60 or 2.04% on the day after today’s EIA storage report. Total commercial stocks while flat last week the prior week confirmed an even larger build than the huge API build. The price action has dented bullish speculators hopes after it settled at $77.17 Friday, up $1.43 or 1.89% on the day rallying with a war premium into the weekend, but … Continue reading “Around The Barrel – Crude Oil Futures Pressured by More Builds in US Crude Stocks”

Around The Barrel – Crude Oil and Gasoline Traders Outlook for the Week Ahead

Crude oil futures continue to sell off after they closed with their second straight weekly loss, much to the chagrin of the ‘blood speculators’ out there. The risk premium from the Israel-Hamas war has fallen off with a broader conflict with Iran not eventuating as of yet, though that remands a risk. The overhead speculator length in prices well above spot prices is pressuring margins and support. The options (LO) call skew for WTI and Brent has weakened as a … Continue reading “Around The Barrel – Crude Oil and Gasoline Traders Outlook for the Week Ahead”