Market Report & Analysis for 1/5/18 Afternoon Edition
Afternoon Market Overview
The API started the weekly inventory report cycle with a mixed inventory snapshot. Crude oil declined less than expected with gasoline stocks building less than expected while distillate fuel inventories built much more than the market expectations.
The total combined inventories of crude oil and products were modestly higher on the week. Overall the market added to its intraday RBOB and crude oil gains but pared some of the gains in ULSD after the report was issued. THe API reported US crude oil stocks decreased by 5 million barrels on the week. Cushing crude oil stocks decreased by 2.1 million barrels. They also reported a 4.3 million bbl build in distillate fuel inventories and a 1.8 million bbl build in gasoline stocks.
Total combined inventories of crude oil and refined products were modestly lower for the week and outside the range of market expectations also shown in the table above. This week’s US inventory data will be reflective of a normal operating environment and following the normal predictive models.
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. Canadian imports into the US for the week ending December 22 decreased by 240,000 bpd to 3.328mn bpd and are now 307,000 bpd below the previous all- time record-high reached earlier in the year, per the U.S. Energy Information Agency.