Today's EIA inventory report sent mixed messages to the market. A sharp draw on crude and a large build in gasoline say that lots of crude is in process but there's not the corresponding increase in demand for the finished product. However, demand for gasoline is up 3.2% while inventory built up nonetheless with crude prices ascending anyway. Refinery utilization is up to 89.8% and crack spreads are shrinking as refineries changed to summer 2:1 gasoline:distillate production ratios.
Analysts also took comfort in their buying from the drop in first time unemployment claims.
Today, crude +$1.35, $75.42, gasoline +2.54¢, $2.0513, distillate +2.62¢, $2.0058.
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