Market Report & Analysis for 3/14/2018 Afternoon Edition

by | Mar 13, 2018 | EMI, Fuels & Markets, FutureRack, Industry News

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 increased as refiner demand for crude oil decreased while refined product inventories are projected to be lower in this week’s report.

  • We are expecting a build in US crude oil inventories, a draw in distillate fuel stocks due to the weather and a draw in gasoline inventories.
  • We are expecting total combined crude and refined product inventories to decline in this week’s report. Expect crude oil stocks to increase by about 1 million barrels.

If the actual numbers are in sync with our projection the year over year deficit versus last year will narrow while the comparison to the five-year average will now show a slight surplus. Canadian imports into the US for the week ending Mar 2 increased by 23,000 bpd to 3.442mn bpd and are now 193,000 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 2 million barrels which would result in the gasoline year over year surplus moving back to a deficit barrels while the surplus versus the five-year average for the same week will narrow.

Distillate inventories are projected to decrease by 1.2 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 while the deficit versus the five-year average will widen.