RCC Energy update Wednesday 09/19/2018
NYMEX @ the close.
- October WTI Crude up $1.27 @ $71.12
- RBOB up 1.58 cents.
- October ULSD up 1.09 cents.
- Gasoline up 3 cents. (up 15 cents since last Friday)
- Diesel up 1.75 cents. (up 7 cents since last Friday)
- LP finished down 1.5 cents at the Conway, Kansas hub.
The weekly DOE report came out today.
Crude stocks dropped for the 5th consecutive week. These draws over the last few weeks are due to increased exports of US crude oil.
WTI crude is the US’s bench mark crude oil (WTI = West Texas Intermediate). A major part of the rest of the world’s bench mark crude product is Brent crude, which is a higher grade (sweeter) product than WTI.
But currently the price differential makes it favorable for the world to import US WTI crude. Brent crude settled at $79.40 today. Biggest difference in a while.
There was a 1.7 MB draw on gasoline which was about what was predicted, but the year on year comparison is the worst it has been in quite awhile.
Diesel had a modest build of .8 MB, but puts diesel inventory levels over last year at this time. The bulls on crude and gasoline managed to pull the price up a bit inspite of bearish news.