- Prior was -3282K
- Gasoline -1172K vs -1178K expected
- Distillates +111K vs +960K expected
- Refinery utilization -1.1% vs -0.4% expected
- Implied gasoline demand 8.591m vs 8.43m last week
- SPR draw of 3.1m vs 8.1m prior
Here's what the API reported late yesterday:
- Crude +593K
- Gasoline -3414K
- Distillates -1726K
- Cushing -599K
WTI crude oil was down $1.43 to $90.66 ahead of the data after trading as low as $88.45. The initial reaction was a 20-cent rise higher but it has sinced dropped quickly down to $89.90. That could be separate headlines stating that the EU's foreign policy chief is hopeful of an Iran deal 'within days'.
The mystery in the report continues to be low gasoline demand but I think the mystery has been solved by HFI, who cites customs data and import/export models as the culprit.
"The issue here is that if product exports are overstated, then it inherently lowers the 'implied' demand domestically. That's the reason why when EIA understates exports, implied demand jumps and vice versa," HFI writes.
