Rising US gasoline stocks sink crude

Brent was under pressure Wednesday after the release of US weekly oil statistics, firstly after the data from the American Petroleum Institute (API) late Tuesday and then following the release of data from the Energy Information Administration (EIA) late Wednesday afternoon.

The June crude future started trading at $62.60/bbl, some 21 cts/bbl lower than its Tuesday settle.

Prices dipped to $62.43/bbl by the 16.30 Singapore close, and then $61.99/bbl by 16.30 UK time, down $1.48/bbl from the same time Tuesday.

The API saw U.S. crude inventories up 2.9 million barrels over the week, although gasoline stocks were down 3.7 million barrels.

The EIA saw crude stocks down 3.5 million barrels, but gasoline stocks up 4 million barrels, and distillate stocks up 1.5 million barrels.

U.S. refinery utilization rates only nudged higher to 84%, up just 0.1 percentage point, and there was a hefty fall in total US product demand.

Products

Lightends led the charge lower, outstripping crude. Premium unleaded gasoline barges were offered at $610/mt at 16.30pm UK time, and the assessment at $609/mt was some $15/mt ($1.80/bbl) lower than yesterday at the same time. But there was a far bigger slump in FOB Mediterranean premium unleaded gasoline prices, dropping $40.5/mt from yesterday to reverse most of yesterday's gains.

Naphtha cargo prices dropped sharply, and the crack value softened versus crude.

But diesel and gasoil prices largely resisted the falling Brent, sliding lower in low single digit figures, pushing refining margins higher.

Jet barge premiums in ARA continued their march higher, with a trade at $22.25/mt above March Low Sulfur Gasoil futures.

In the fuel oil market, high sulfur fuel oil barges in ARA traded in narrow range of $344/mt to $345/mt, but marine fuel 0.5% sulfur fuel oil traded ina very wide range of $440.50/mt to $407/mt.