WTI Down, RBOB Up After Huge Gasoline Draw, Crude Build

WTI/RBOB prices chopped around today, but drifted lower into the API data which shocked both ways. A larger than expected crude build sparked WTI selling and the biggest gasoline draw since October sparked RBOB gains.


  • Crude +5.66mm (+3mm exp)

  • Cushing -790k exp

  • Gasoline -4.536mm - biggest draw since Oct 2017

  • Distillates +1.487mm


Prices limped lower into the print, but WTI kneejerked lower and RBOB higher after the data...

“People are waiting to see: Will storage volumes point toward a tighter fundamental outlook?” said Gene McGillian, a market research manager at Tradition Energy in Stamford, Connecticut. “It does appear as if we need more evidence that the rebalance continues to really ignite a rally again.”


adr Tue, 03/06/2018 - 17:38 Permalink

Remember when sub $80 oil meant RBOB under $1.10?

Funny how gas cost $1.65 at the pump when oil was $72 and now it is $2.74 with oil at $62.

Fucking trading assholes.

guardyernuts adr Tue, 03/06/2018 - 18:02 Permalink

Dude, you should really have some idea what you are talking about before you spout nonsense.  A barrel of crude contains 42 gallons, so crude at $62 per barrel is equivalent to $1.48 per gallon.  To become usable, that gallon of crude must be transported to the refinery and processed into gasoline (RBOB) and other petroleum products.  Those products must be transported to a distribution terminal, often many hundreds of miles away, blended with ethanol in the case of RBOB, then further transported to the gas station. At that point, state and federal taxes in the amount of $0.40 to $0.80 per gallon (typically) are added to the price, and the gas station operator adds a few pennies per gallon to cover his costs (he makes all his money selling beer, soft drinks, Slim-Jims and lottery tickets). Regular gas in my (low tax) area is going for $2.25/gallon. There is no gouging going on.

If you remember gas being $1.65/gallon when oil was $72/barrel, you were a few tokes over the line.

In reply to by adr