• Prior was +4467K
  • Gasoline -4978K vs -633K expected
  • Distillates +2166K vs -667K expected
  • Refinery utilization +3.3% vs +0.7% expected
  • SPR draw of 5.3m
  • Implied gasoline demand 9.12m vs 8.54m last week

API data yesterday flagged growing inventories but not the jump in refinery utilization.Oil fell about $2 in the hour leading up to the release but is flat after the report (picking up now). The climb in oil inventories is obviously negative but it's offset somewhat by the draw on gasoline and rebound in implied gasoline demand -- something that has been watched closely.

Still, official gasoline demand data is still running well short of private estimates.

gasoline demand

In any case, WTI crude oil was last at $89.09 which is near the worst levels since February. Eyes are on Iran at the moment with a nuclear deal on the table. Early signs are that they want to continue to negotiate.

API data from late yesterday:

  • Crude +2156K
  • Gasoline -627K
  • Distillates +1376K
  • Cushing +910K