Afternoon Market Overview

This week the EIA & API inventory data will be released on their regular schedule. The API report will be issued late this afternoon with the EIA inventory report scheduled for release on Wednesday at 10:30 AM.

Crude oil stocks likely decreased even as refiner demand for crude oil decreased slightly while refined product inventories are projected to decline in this week’s report. We are expecting a draw in US crude oil inventories, a draw in distillate fuel stocks and in gasoline inventories as refinery runs likely decreased. We are expecting total combined crude and refined product inventories to decline in this week’s report. We are expecting crude oil stocks to decrease by about 2.2 million barrels. If the actual numbers are in sync with our projection the year over year deficit versus last year will narrow to 103.3 million bbls while the comparison to the five-year average will now show a deficit of 18.2 million bbls.

Canadian imports into the US for the week ending April 13 increased by 141,000 bpd to 3.542mn bpd and are now 93,000 bpd below the previous all-time record-high reached early in 2017, per the U.S. Energy Information Agency. With refinery runs expected to decrease (around 0.4 percent) We are expecting a draw in gasoline stocks.

Gasoline stocks are expected to decrease by 1.2 million barrels which would result in the gasoline year over year surplus coming in around 6.2 million bbls while the surplus versus the five-year average for the same week will narrow to 8 million bbls.

Distillate inventories are projected to decrease by 0.5 million barrels on the week. If the actual EIA data is in sync with our distillate fuel projection inventories versus last year will likely still be well below last year by 26.1 million bbls while the deficit versus the five-year average will widen to 16.3million bbls.