After an early spike on Libya production fears and OPEC production cut extension hope, WTI and RBOB faded all day on dollar strength ahead of the API data. The trend of builds in Crude and draws in gasoline and distillates continued but the gasoline draw was notably less than expected and has sparked selling in RBOB.
- Crude +1.91mm (+2mm exp)
- Cushing -576k
- Gasoline -1.104mm (-2mm exp)
- Distillates -2.035mm
Cushing saw a draw for the first time in 5 weeks but crude builds continued their streak. The most notable print was lower than expected gasoline draw...
The kneejerk reaction was selling in RBOB after a smaller than expected draw...
According to James Williams, economist at London, Arkansas-based energy-research firm WTRG Economics:
“The normal spring maintenance season switch to summer blend of gasoline always puts upward pressure on crude,... Every spring, the market seems to wonder if we are going to have enough gasoline for summer”