WTI Dips After Smaller Crude Draw; Pump-Prices Set To Soar As Gasoline Stocks Plunge
Oil prices surged higher this morning after a Ukrainian drone struck one of Russia’s biggest refineries and API's report overnight signaling shrinking US crude stockpiles.
API
Crude -5.52mm (+400k exp)
Cushing -998k
Gasoline -3.75mm
Distillates -1.16mm
DOE
Crude -1.54mm (+400k exp)
Cushing -220k
Gasoline -5.66mm - biggest draw since Nov
Distillates +888k
The official data showed a smaller draw than API (but not a build as expected). Gasoline stocks plunged...
Source: Bloomberg
The Biden administration continued its 600-700k barrel weekly addition to the SPR (13th week in a row)...
Source: Bloomberg
US Crude production decline once again...
Source: Bloomberg
WTI was hovering just above $79.50 ahead of the official data and dipped below on the smaller crude draw...
And as crude prices rise, wholesale gasoline prices are soaring... and so are pump prices...
Source: Bloomberg
There’s a risk that premium gasoline prices could reach a multi-year high this year, said Mukesh Sahdev, head of oil trading and downstream research at Rystad Energy AS.
“There’s not a lot President Biden can do in time for the election, if this happens” he said.
“Strategic petroleum reserves are low, and there are few levers for the US government to pull to lower gasoline prices.”
Of course, we are sure Biden will blame gas stations if prices go up.
