Petroleum Report: WTI Storage Build Continues

October 3, 2013 04:10 AM

Crude Oil --

November 2013 WTI crude oil opened today at $103.82. Next support lies at the August 5 daily low of $102.22. A violation of that level would make $96.07 bears' next target. Resistance lies at $107.28 and at the late August/early September double top at $109.50.crstuss10 3

U.S. crude inventories firmed 5.5 million barrels to 363.7 million barrels -- now just 1.0 million barrels below year-ago.

November 13 Brent crude oil futures opened today at $108.87. Next support lies at $108 and $107.50. A move below those levels would suggest downside potential to $105 and psychological $100. Resistance lies at Friday's $109.50, but we expect sideways movment in the near term.

The WTI/Brent crude spread softened 26 cents on the week to $5.05 with Brent on top.

Fuels --

Gasoline falls for a 4th week; diesel down the last three.

According to EIA, the U.S. average retail price of regular gasoline decreased seven cents to $3.43 per gallon as of September 30, 2013, 38 cents lower than last year at this time, and the lowest price since January 28, 2013. Prices were down in all regions of the nation, with the largest decrease coming in the Midwest, where the price lost 11 cents to $3.35 per gallon. The Gulf and West Coast prices were $3.18 per gallon and $3.80 per gallon, respectively, down six cents from last week. On the East Coast, the price was $3.41 per gallon, five cents less than last week, and the Rocky Mountain price was four cents lower at $3.55 per gallon.

The national average diesel fuel price decreased three cents for a second consecutive week, to $3.92 per gallon, 16 cents lower than last year at this time. Prices decreased in all regions of the nation, with both the Midwest and West Coast prices dropping four cents, to $3.89 per gallon and $4.08 per gallon, respectively. On the East and Gulf Coasts, the price was $3.93 per gallon and $3.83 per gallon, respectively, both three cents lower than last week, and the Rocky Mountain price fell two cents to $3.93 per gallon, according to EIA.

Farm Diesel was 2 1/2 cents lower this week according to Inputs Monitor data at a regional average of $3.543/gallon with three of the twelve states in our index unchanged, and 5 states reporting a decline. The highest price was recorded in South Dakota at $3.67, unchanged over last week, while Nebraska captured the regionwide low at $3.38 -- unchanged on the week.

Propane --

According to EIA, Total U.S. inventories increased by 1.6 million barrels last week to end at 67.0 million barrels, about 8.6 million barrels (11.3%) lower than the same week last year. Gulf Coast inventories led the gain with 0.6 million barrels of new stocks. The East Coast and Midwestdisstuss10 3 regions each grew by 0.4 million barrels, and the Rocky Mountain/West Coast stocks added 0.2 million barrels.

Propylene non-fuel-use inventories represented 4.7% of total propane inventories.

LP moved 8 1/4 cents higher in the Inputs Monitor Index to $1.539. The lowest priced LP in our index is in Minnesota at $1.35 while the high mark is at $1.99 in Michigan.

Distillate --

The national distillate supply fell 1.7 million barrels to 129.2 -- 5.1 million barrels above year-ago.

Graphs and indicated text provided by EIA.


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