RCC Energy update Wednesday 08/15/2018
NYMEX @ the close.
- September WTI Crude down $2.03 @ $65.01
- RBOB down 3.67 cents.
- ULSD down 3.83 cents.
- Gasoline down 5 cents.
- Diesel down 4 cents.
- LP finished down 1 cent at the Conway, Kansas hub.
The bears invaded the market after today’s DOE report led by a large build on crude. The report had a build of over 6MB’s, but maybe more importantly was a build at the WTI crude hub in Oklahoma that accounted for about 1.6MB’s of that build. The significance of this is that was the first report of build in Cushing for the first time in 12 weeks.
Diesel also had a build combined with a ease on demand and a increase in production and imports.
The report was bullish on gasoline, with an implied increase in demand and a decline in stocks, but the drop in inventory was much less than predicted by the pundits on Tuesday night.