Crude inventory was down but gasoline and distillate stocks rose. Most traders realized this set of events had to do with continuing stagnant demand that saw refinery utilization at 78.5%, barely moving up 0.1% as well as the Sabine Channel closure most of last week that cut back on crude deliveries. This is turnaround time for refineries and very few refineries will be stocking up on crude with decreased demand for product. Crack spreads are so low that crude runs are at the level of the fall hurricane season.
Just as bearish was the increase in distillate inventory. The fact that mid-section of the country is facing another series of winter storms and distillate demand is down indicates how few trucks are running and how few jets are flying.
Today, crude -$1.29 to $73.42, gasoline -3.92 cents to $1.9313, gasoline -3.92 cents to $1.9154. Best street price was $2.329, down 4 cents.
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