RCC Energy update Wednesday 10/03/2018
NYMEX @ the close.
- WTI Crude down $1.18 @ $76.41. Highest price on the spot continuous chart in 4 years.
- RBOB up 1.09 cents.
- November ULSD up 2.96 cents.
- Gasoline up 1 cents.
- Diesel up 5.5 cents.
- LP finished down 1.5 cents at the Conway, Kansas hub.
The markets took a bit of a breather on Tuesday, down 2 cents on gasoline and neutral on diesel.
DOE report came out at 9:35 this morning.
Crude: 8 MBL build.
Gasoline: .45 MBL draw with a small increase in demand, but well over year on year supply compared to 2017.
Diesel: 1.75 MBL draw, but with a lower implied demand.
The overall world demand on crude projected for the rest of fourth quarter 2018 (I know – broken record) managed to over shadow a very bearish crude supply report.
I think local refinery turn around is causing local diesel to out pace the NYMEX, but if the bulls stay in control like they did today, we may be in new territory.
Both Russia and Saudi Arabia say they can makeup the crude shortfall, but that will take a while to get to the market.