Gasoline RBOB Futures Market News and Commentary
Aug WTI crude oil (CLQ19) this morning is down -0.30 (-0.52%), and Sep Brent crude oil (CBU19) is down -0.03 (-0.05%). Aug RBOB gasoline (RBN19) is up +0.0019 (+0.05%). The energy complex is mixed this morning as larger-than-expected builds in oil products were offset by a larger-than-expected draw in crude oil inventories. Crude oil prices are being supported today by a weaker dollar and by the -3.12 million bbl decline in EIA weekly crude oil inventories, slightly more than expectations of -3.0 million bbl. Crude oil prices are also seeing support from the EIA's report that U.S. oil production last week fell by -2.4% w/w to a 4-month low of 12.0 million bpd because of Hurricane Barry's trek through the Gulf of Mexico. However, crude prices fell into negative territory and gasoline gave up most of its gains after weekly EIA gasoline stockpiles unexpectedly rose +3.565 million bbl, more than expectations of a -2.4 million bbl draw. In addition, distillate supplies rose +5.686 million bbl, above expectations of +1.0 million bbl. Oil prices continue to see support from Middle East tensions after Iran denied Tuesday's U.S. claim that Iran was willing to negotiate if some conditions are met. Iran has vowed retaliation for the UK's seizure of an Iranian oil tanker earlier this month although the UK has reportedly offered to return the tanker if the oil does not go to Syria. Today's EIA data showed that U.S. crude oil inventories as of July 12 were +5.3% above the 5-year average, gasoline inventories were +2.1% above the 5-year average, and distillate inventories were -1.5% below the 5-year average.