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Crude Oil Stocks Build, Greater than Expectations
 
The DOE reported Total Crude Oil Inventories increased by 3.6 million barrels to 450.8 million barrels for the week ending February 8, 2019, while the expectations average was for a 2.7 million barrel build.
Overall hydrocarbon supplies increased by 6.5 million barrels to 1,266 million barrels.
Crude Oil Production remained at 11.9 million barrels per day.
Total Crude Imports decreased by 900,000 barrels per day to 6.2 million barrels per day, a record low for this time of the year.
Total Refinery Crude Runs were down 900,000 barrels per day to 15.77 million barrels per day.
The crude oil stocks build was bearish to crude oil price, but news reports of the Saudis reducing crude exports and cutting production supported the market. The build came despite the record low in crude imports. While March crude futures settled up about 90 cents today, there remains downward pressure on prices from increasing concerns over the US-China trade negotiation and slowing global economic growth.
We would be happy to discuss this commentary with you and provide additional market insights.
Feel free to call us at 312-348-7518 or email us at joel.fingerman@fundamentalanalytics.com.

Gasoline
 
Gasoline Stocks Build, Less than Expectations
 
Total MotorGasoline Inventories increased by 400,000 barrels to 258.3 million barrels for the week ending February 8, 2019. The expectations average was for an 800,000 barrel increase.
Implied Demand was down by 390,000 barrels per day to 10.0 million barrels per day.
Gasoline Production decreased by 240,000 barrels per day to 9.62 million barrels per day.
The DOE report was moderately bullish to gasoline prices with the relatively strong demand for this time of the year. Gasoline prices rallied with the report release, stronger than crude, so the gasoline crack improved. However, the margins are still not profitable.

Distillates
Distillates Stocks Build, Expectations were for a Draw.
 
Total Distillates Stocks increased by 1.2 million barrels to 140.2 million barrels for the week ending February 8, 2019, while the expectations average was for a 1.1 million barrel draw.
Total Distillates Production was down by 360,000 barrels per day to 4.76 million barrels per day.
Total Distillates Implied Demand decreased by 870,000 barrels per day to 5.03 million barrels per day.
The DOE report was bearish to distillates prices. Heating oil prices dropped from the day’s high with the report release. However, the heating oil prices remained positive for the trading day, and the March heating oil crack spread is greater than $27.
For further information contact joel.fingerman@fundamentalanalytics.com

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