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Welcome to this week’s Thirsty Thursday: An Inventory Report. With Russia being in the news so often I thought we would make a Russian-named cocktail this week, the classic Moscow Mule. Most parts vodka and some part lime and ginger beer are sure to put you in the right mindset to get into this week’s numbers, so let’s get started!
You won’t need to even read this report soon with all these builds! This week it’s a 7.6 million barrel build according to the EIA, I wager next week we see an 8.3 million barrel build. Yes, we are back to Nick making bets on oil inventory data. So come back next week to see if I hit on my bet!
The API reported a somewhat higher build than the EIA at nearly 10 million barrels. While both builds aren’t quite as large as last week, they are still quite a decent size when compared to several months ago.
When will the first draw happen? After more than two months of straight builds the market seems due for a draw. The main reason behind the 60 million barrel cumulative build this year is reduced refinery output, stunting the volume of oil than can hit the market.
Brent and WTI are down about $3 each from where they started the week. A tighter processed oil supply could cause the price of oil to regain some traction, especially WTI. This may have been part of the reason for WTI’s price spike in the last day or so.
If you have a lot riding on the price of natural gas this was surely a fun week for you. NG first dropped another 30 cents this week, however, has since recovered nearly 20 of those cents in the past few days. It is still down over $4 from two months ago, but maybe I shouldn’t remind you of that…
Nothing new on the gasoline price front, they’re still relatively flat, slightly down on the week. Gasoline stocks on the other hand have finally changed direction, they have crested the peak now and show signs of declining. If the 5-year range is to be trusted we can expect gasoline stocks to drop for a while now.
National gasoline prices are down $0.003, nothing to get excited over. Hawaii, California, and Nevada are all up there with the most expensive gas in the country. Colorado is making it’s case though and if the refinery here in Colorado doesn’t get back online soon we may take over the lead in a few weeks.
Diesel dropped 7 cents this week! At this rate, we’ll reach last year’s normal prices in a few years… If rising distillate stocks are going to continue on their path we may indeed see deisel cheapening at a quicker rate. Propane/propylene remain in their 5-year range.
That does it for this week. I hope everyone has a great weekend and we’ll see you next week, cheers!
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