Wednesday July 27, 2016
Markets were a mixed bag on Tuesday. Across the board losses were seen early in the day, as the downward momentum continued. Interestingly, the early losses on the front month RBOB contract pushed its value to the lowest point it has seen since March 4th. However, this movement was tempered on the products side. The recent decline brought back renewed buying which ultimately brought the products into the green for their settle. Despite this small bounce in the ULSD and RBOB contracts, WTI settled lower on the day and finished below $43. This marks four straight days of losses for front month WTI, and losses in six of the last seven trading sessions.
The market was slightly lower late in the day, after the release of the API’s weekly inventory numbers. Crude oil inventories were reported as a draw, but less so than the expected amount, which was still not the bullish draw expected. On the products side, distillate inventories had a small build just shy of 300,000 bbls, while the gasoline stocks saw a small draw of just under 500,000 bbls. The market will now look to today’s Department of Energy’s mid-morning release of their weekly inventory levels.
Gulf Coast markets were higher for both gasoline and diesel yesterday. News of refinery issues, along with a scheduling day for the Colonial Pipeline system, brought the market higher. On the day, ULSD basis finished up about 75pts and gasoline was up a penny plus.
Published by PAPCO, Inc. (PAPCO)
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