Petroleum Report: Fuel Declines Continue as Crude Stocks Build

October 9, 2013 11:39 AM

Crude Oil --

November 2013 WTI crude oil opened today at $103.02 and chopped lower through out the day to end at $101.61. Next support lies at $101.18, psychological $100 and below that, $96.07. Resistance lies at $101.75 and $102.59. A violation of those levels would make $103.34 bulls next target.WTI10 9

U.S. crude inventories firmed 6.8 million barrels to 370.5 million barrels -- now 4.2 million barrels above year-ago.

November 13 Brent crude oil futures opened today at $110.11 and slid lower through midday. Next support lies at $108.20 and $107.96. A move below those levels would suggest downside potential to $105 and psychological $100. Resistance lies at Friday's $109.50 and $110.65 from yesterday.

The WTI/Brent crude spread firmed $2.04 on the week to $7.09 at the open with Brent on top. crstuss

Fuels --

Gasoline falls for a 5th week; highway diesel down the last four.

According to EIA, the U.S. average retail price of regular gasoline decreased six cents to $3.37 per gallon as of October 7, 2013, 48 cents lower than last year at this time, and the third consecutive week where prices decreased in all regions of the nation. Both the Midwest and West Coast prices dropped seven cents, to $3.28 per gallon and $3.74 per gallon, respectively. Down a nickel, the East Coast and Gulf Coast prices were $3.36 per gallon and $3.13 per gallon, respectively. The Rocky Mountain region price was $3.51 per gallon, a decrease of four cents.

The national average diesel fuel price decreased two cents to $3.90 per gallon, 20 cents lower than last year at this time. Prices decreased in all regions of the nation for the second consecutive week. The Gulf Coast price lost three cents to $3.81 per gallon, while the East Coast, Midwest, and West Coast prices are all lower by two cents, to $3.91 per gallon, $3.88 per gallon, and $4.05 per gallon, respectively. The Rocky Mountain price was $3.92 per gallon, a penny lower than last week, according to EIA.

Farm Diesel was a full penny lower on the week, currently at $3.533 with seven of the twelve states in our Index unchanged. The longer we put off the first frost, the more the national distillate supply will build, pressuring farm diesel into late season declines, as #2 fuel oil for home heat waits in the wings.

Our highest recorded farm diesel price on the week was in North Dakota at $3.65/gallon and the regionwide low was pegged in Iowa at $3.43.

Propane --

According to EIA, total U.S. inventories of propane decreased by 0.5 million barrels last week to end at 66.5 million barrels, about 9.4 million barrels (12.4%) lower than the same week last year. Gulf Coast inventories led the decline by falling 0.5 million barrels. Rocky Mountain/West Coast stocks fell 0.1 million barrels and East Coast stocks were down slightly. Midwest propane inventories grew 0.1 million barrels. disstuss

Propylene non-fuel-use inventories represented 4.5% of total propane inventories.

LP moved nine tenths lower in the Inputs Monitor Index to $1.53. The lowest priced LP in our index is in South Dakota at $1.38 while the high mark is at $1.91 in Michigan.

Distillate --

The national distillate supply fell 3.1 million barrels to 126 -- 9.4 million barrels below year-ago.

Graphs and indicated text provided by EIA.


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