Fuel Price Index [05.23.2018]Crude Inventories rose 5.78 mmbls., Distillate inventories fell .98 mmbls., Gasoline inventories fell 1.88 mmbls. Huge jump in CL inventories is catching the market by surprise and (at least temporarily) taking crude away from its most recent highs. The size of the draw was less surprising. Even though distillates dipped to the lowest levels since January, there was a big jump in exports that might help explain.
There is a lot of tension and “what if’s” floating around the marketplace – OPEC, North Korea, Venezuela, Iran, etc. On any given day, the market – clearly leaning to the “upside” – can swing a lot more than any fundamental would dictate. If there is something to think about, it would be to stay conservative, as speculation might not be for the faint of heart.
Jim Slattery, President