Petroleum Report: Surprising Inventory Build Suppresses Crude Futures

September 25, 2013 08:42 AM

Crude Oil -- wti9 25

November2013 WTI crude oil opened today at $103.41 which inspired a midmorning round of sell-offs. The contract since rallied and tested trendline resistance at $103.63 and has faded ever since, currently at $102.60. Next support lies at the August 5 daily low of $102.22. A violation of that level would make $96.07 bears' next target.

U.S. crude inventories firmed 2.6 million barrels to 358.3 million barrels -- now 6.9 million barrels below year-ago. crstuss9 25

November 13 Brent crude oil futures opened today at $108.72. Next support lies at $108 and $107.50. A move below those levels would suggest downside potential to $105 and psychological $100.

Currently, the WTI/Brent crude spread stands at $5.31 with Brent on top -- $2.91 firmer than the same time last week.

Fuels --

According to EIA, the U.S. average retail price of regular gasoline decreased five cents to $3.50 per gallon as of September 23, 2013, 33 cents lower than last year at this time, and the lowest price since July 8. Prices were down in all regions of the nation, with both the East and Gulf Coast prices dropping seven cents, to $3.46 per gallon and $3.23 per gallon, respectively. The Midwest price was $3.46 per gallon, the Rocky Mountain price $3.59 per gallon, and the West Coast price $3.87 per gallon, all three cents lower than last week.

The national average diesel fuel price decreased three cents to $3.95 per gallon, 14 cents lower than last year at this time. The Rocky Mountain price increased less than a penny to remain at $3.94 per gallon, while prices in all other regions decreased. The East Coast price was $3.96 per gallon, two cents lower than last week. The Midwest, Gulf and West Coast prices all decreased three cents, to $3.93 per gallon, $3.86 per gallon, and $4.11 per gallon, respectively, according to EIA.

Farm Diesel was 10 3/4 cents higher this week according to Inputs Monitor data at a regional average of $3.568/gallon with three of the twelve states in our index unchanged, and just one state reporting a decline. The highest price was recorded in Missouri at $3.73, up 28 cents over last week, while Wisconsin captured the regionwide low at $3.23 -- unchanged on the week.

Propane --

According to EIA, total U.S. inventories increased by 1.0 million barrels last week to end at 65.5 million barrels, about 8.8 million barrels (11.9%) lower than the same week last year. Midwest stocks rose by 1.1 million barrels, while East Coast stocks grew 0.2 million barrels. Rocky Mountain/West Coast stocks were up by 0.1 million barrels. Gulf Coast inventories dropped by 0.4 million barrels. disstuss9 25

Propylene non-fuel-use inventories represented 4.8% of total propane inventories.

LP moved 2 1/2 cents higher in the Inputs Monitor Index to $1.457. The lowest priced LP in our index is in Minnesota at $1.35 while the high mark is at $1.69 in Indiana.

Distillate --

The national distillate supply fell 0.2 million barrels to 130.9 -- 3.1 million barrels above year-ago.

Graphs and indicated text provided by EIA.


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