DOE Insights September 5, 2019

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DOE Insights, September 5, 2019

Crude Oil Stocks Draw, Much Greater than Expectations
The DOE reported Total Crude Oil Inventories decreased by 4.8 million barrels to 423.0 million barrels for the week ending August 30, 2019, while the expectations average was for a 2.5 million barrel draw.
Overall hydrocarbon supplies decreased by 4.9 million barrels to 1,299 million barrels.
Crude Oil Production decreased by 100,000 barrels per day to 12.4 million barrels per day.
Total Crude Imports increased by 1.0 million barrels per day to 6.8 million barrels per day.
Total Refinery Crude Runs were unchanged at 17.38 million barrels per day.
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Despite the DOE report being bullish to crude oil prices, prices fell not long after the report was released, ending the trading day about 5 cents down. Prices are still being driven by headlines so the volatility is significant. We expect range trading and volatility during the near future.

Gasoline

Gasoline Stocks Draw, Greater than Expectations

Total MotorGasoline Inventories decreased by 2.4 million barrels to 229.6 million barrels for the week ending August 30, 2019. The expectations average was for a 1.5 million barrel decrease.
Implied Demand was down by 590,000 barrels per day to 11.3 million barrels per day.
Gasoline Production was down 390,000 barrels per day to 10.27 million barrels per day.
The DOE report was also bullish to gasoline prices and tracked crude prices. Prices tested the lows Tuesday and will probably be range bound with volatility.

Distillates

Distillates Stocks Draw, Expectations were for a Build

Total Distillates Stocks decreased by 2.5 million barrels to 133.5 million barrels for the week ending August 30, 2019, while the expectations average was for a 0.5 million barrel build.
Total Distillates Production was down 40,000 barrels per day at 5.15 million barrels per day.
Total Distillates Implied Demand increased by 30,000 barrels per day to 5.64 million barrels per day.
The DOE report was bullish to heating oil prices and they tracked crude oil prices after the report was released. Heating oil was the strongest today in the energy complex and if demand and exports remain prices will be supported.
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Regards,
The Fundamental Analytics Team