EIA Weekly Energy Stocks

EIA Weekly Energy Stocks

Refinery Rate: 95.8% 

🛢 Crude Oil: 411.4M ▲ 3.0M wk | -14.6M yr

⛽ Gasoline: 212.1M ▼ 1.9M wk | -17.4M yr

🔥 Distillate: 103.6M ▼ 5.0M wk | +0.8M yr

🏭 ULSD: 93.8M ▼ 4.4M wk | +0.3M yr

Analysis 

Distillate drew 5.0 million barrels this week, the biggest product draw on the sheet by a wide margin. Gasoline pulled back another 1.9 million. Crude built 3.0 million, the first build in three weeks, but the product side of this report is doing the talking. 

Gasoline is now 17.4 million barrels below last year heading into the thick of driving season, and that deficit has only widened since June. Distillate at 103.6 million just gave back more than the entire 2.5 million build from last week, with refineries easing to 95.8 percent utilization from 96.6 the week before. The rate slipping and products drawing that hard says the system is tighter than the crude build would suggest. 

WTI settled Friday at $68.78, still below the 200 day at $73.90 with RSI at 23.7. The 20 day swing low at $67.04 is the floor. A close above the 200 day opens the door to a retest of the 20 day near $76.63, while a break below $67 puts the mid $60s in play.