The DOE data was bullish on refined products and bearish on crude oil. Products started the morning higher and initial reaction pushed the products about a penny higher than they were. Crude Oil has shown slight weakness.
Crude oil inventory was bearish with a build of 2.516 million barrels versus estimates for a build of 1.000 million barrels. Cushing, OK had a large build of 1.693 million barrels. US refinery utilization was up 1.1% at 82.0%. The trade had estimated utilization to be unchanged. Distillate inventories were very bullish with a draw of 3.977 million barrels versus the expected draw of 500,000 barrels. Gasoline inventories were also very bullish with a draw of 5.494 million barrels versus estimates for a draw of 1.500 million barrels.
The product markets spiked higher immediately following the report trading a 3 cent range within the first minute following the report. The report was mixed with a large build at the Cushing, OK delivery point helping keep WTI crude lower relative to Brent crude, and widening that spread back out to nearly $10 after trading to within $8.00 overnight. We continue to draw down inventories on products for a third week in a row. Despite these draws, all three inventory levels continue to remain above the average range for this time of year.
March 9 (Bloomberg) — U.S. stock-index futures erased gains and energy markets were higher following a report that smoke plumes had been seen near an oil terminal in Libya. Smoke plumes were seen in an area near the Es Sider oil terminal in Libya today, Reuters reported. It was not immediately clear whether the oil terminal itself has been hit, the newswire said.
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