evening wrap, july 8
market vibes
Just charts a few charts and thoughts tonight
The DOE reported US crude inventories rose for the 1st time since March by a total of 3 million barrels.
PADD 1 (East Coast) +142
PADD 2 (Midwest) +1,856
PADD 3 (Gulf Coast) +1,248
PADD 4 (Rockies) -87
PADD 5 (West Coast) -159
On the face of it this may seem insignificant but it’s not. Refining capacity utilization was a molten 95% and PADD3 capacity utilization was 98%. This is the refinery red line. Crude exports were >4 mm bpd. Product exports close to 8 mm bpd and crude inventories went up.
However distillate inventories fell 5 mm bbls and August heating oil rallied 10% because the foreign markets, especially Europe, need distillates. US downstream demand for all products supplied was a docile 20 mm bpd.
RBOB inventories fell 1.9 mm bbls and August gasoline in the NY harbor rose 4%.
Margins ( 3/2/1 cracks) made all time highs…
