US crude oil stocks posted an increase of 1.6 MMBbl. Gasoline and distillate inventories decreased 1.5 MMBbl and 0.7 MMBbl, respectively. Yesterday afternoon, API reported a crude oil draw of 1.25 MMBbl alongside gasoline and distillate draws of 2.6 MMBbl and 1.9 MMBbl, respectively. Analysts, to the contrary were expecting a crude oil build of 2.8 MMBbl. Total petroleum inventories posted an increase of 2.4 MMBbl. US crude oil production decreased 100 MBbl/d last week, per EIA. Crude oil imports were down 0.42 MMBbl/d last week, to an average of 6.1 MMBbl/d. Refinery inputs averaged 15.8 MMBbl/d (18 MBbl/d more than last week’s average). May WTI settled at $24.01/Bbl on Tuesday, up from Monday’s open of $22.52/Bbl. Although flat price appears to have caught a brief respite from the sharp daily declines seen recently, pressure on time spreads continues to mount. Indeed, the contango in the WTI front spread has widened to close to $2.70/Bbl as of this morning. Prompt physical differentials are also reeling, with the Dated Brent to Frontline swap plumping lows of -$3.40/Bbl earlier this week. Given abysmal gasoline cracks and the backing up of supply chains, refiners have embarked on a round of heavy economic run… continue reading
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Source: CTRM Center