Market Report & Analysis for 6/1/2018 Afternoon Edition

Afternoon Market Overview

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

Total combined inventories of crude oil and products were higher on the week. The API reported US crude oil stocks increased by 1 million barrels on the week. Cushing crude oil stocks decreased by 0.1 million barrels. They also reported a 1.5 million bbl build in distillate fuel inventories and a 1.7 million bbl draw in gasoline stocks. Total combined inventories of crude oil and refined products were higher for the week and outside the range of market expectations.

We are maintaining our overall oil view and short-term bias at cautiously bearish. The current fundamentals are still supportive but talk of a production increase has changed the market sentiment. In addition, the externals are mostly negative for oil prices.