After a relatively swift recovering following the devastating hurricanes late last year, refinery utilization moderated sharply since the beginning of this year, and is yet to meaningfully recover. |
At this pace, all the pieces are in place for both total crude and gasoline prices to ease before the peak summer driving season sets in, as we expect. |
Crude inventories remain sturdy, despite today's unexpected drop. |
Despite the moderation in refinery utilization ... last week, gasoline inventories rose a whopping 4.3 million barrels. |
Despite the moderation in refinery utilization by almost 1.2% last week, gasoline inventories rose a whopping 4.3 million barrels. |
Despite the moderation in refinery utilization...last week, gasoline inventories rose a whopping 4.3 million barrels. |
For nearly five straight weeks, the EIA stock report has now surprised the market with inventory numbers on the upside. As a result, prices for crude especially will revert to the lower numbers seen in December. |
Gasoline prices are bound to rise further in the near term as the summer driving season kicks in. |
Inventories are extraordinarily sturdy, and OPEC's commitment, at least in the near term, to not cut production should only serve to reinforce the ample supply of oil in the market. |
Inventories for this time of the year remain astoundingly above average. |
Inventories for this time of the year remain well above average, and in the upper end of the average range for this time of the year. |
Refinery utilization still remains very weak, with refineries still lagging in their recovery from an aggressive March maintenance schedule. |
Since these data are preliminary, it is quite possible that the [Energy Information Administration] data will also show gasoline demand fell in March and April when the revised monthly data are released. |
Sturdy product inventories should help to temper market fears of energy shortages, and should help cajole broader energy prices lower in the next few weeks. |
The ample supply of stocks for all energy products should continue to place downward pressure on prices in the near term. |