Diesel and crude oil stocks were reported to have shrunk according to the American Petroleum Institute’s data release yesterday afternoon. Inventory estimates showed a draw of about 6 million barrels for crude and 1 million barrels for diesel. Gasoline is expected to have built about 6 million barrels last week, but RBOB futures are rallying in sympathy with the rest of the complex. Both refined product benchmarks are up about 1.2-1.3 cents this morning, prompt month WTI future contract is up about 70 cents.
Crude prices are still hanging around the lowest levels of the year with the only semblance of fundamental relief coming from the OPEC meeting at the end of the month. Another production cut could help boost prices back over the $50 mark.
Confirmation of the API’s inventory report by the EIA’s data release at 9:30am (central time) is probable to extend today’s upward momentum. Barring any unforeseen events, these weekly inventory reports will likely be the major deciding factor in terms of overall price direction until the cartel’s meeting on May 25th.