Market Report & Analysis for 6/21/2018 Afternoon Edition

Afternoon Market Overview

The API started the weekly inventory report cycle with a mixed report with a larger than expected draw in crude oil and larger than expected build in gasoline stocks with a surprise build in distillate fuel stocks.

Total combined inventories of crude oil and products were around unchanged on the week. The API reported US crude oil stocks decreased by 3 million barrels on the week. Cushing crude oil stocks decreased by 1.6 million barrels. They also reported a 0.8 million bbl build in distillate fuel inventories and a 2.1 million bbl build in gasoline stocks. Total combined inventories of crude oil and refined products were around unchanged for the week and outside the range of market expectations.

Crude oil stocks likely decreased as refiner demand for crude oil increased while refined product inventories are projected to be mixed in this week’s report. As we have been discussing for weeks the OPEC meeting this week will be one of the most important meetings in a very long time and one that will have long lasting implications on the price direction for oil.