WTI Holds Post-SPR-Release Gains After Surprise Crude Build

Crude prices are holding gains from yesterday’s ‘epic fail’ SPR release after an unexpected crude build.

Source: Bloomberg

Stocks at the Cushing hub rose by the most since October, while marking a second weekly rise. Volumes are now sitting at a four-week high.

Gasoline inventories continued to slide and are still at a four-year low as refineries runs continue to lag demand. 

Commercial crude stockpiles rose by just over 1 million barrels, which wasn’t much, considering that another 1.64 million barrels was drawn out of the SPR. If you add those two together, total U.S. Crude stockpiles actually fell by 625,000 barrels.

Crude production rose last week, back to post-COVID highs…

WTI is holding its post-SPR release gains…

Total product supplied, a measure of oil consumption, is now sitting at the lowest volume since June on a four-week average.

Seasonally we are over a million barrels a day short of 2019 figures when covid wasn’t a concern.

Finally, there’s no relief insight for record-California gasoline prices.

West Coast gasoline stockpiles are at a fresh two-year low with the region still catching up from a spate of refinery outages that began with the Bay Area floods last month.  

Does Biden still have tools?

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