OIL FUTURES: Rally accelerates as US gasoline draw offset Gulf Coast crude build
3rd March 2021 16:13 GMT

An overnight oil price rally extended midmorning March 3 after a larger-than-expected drop in US gasoline stocks offset the largest-ever one-week build in crude inventories.

At 1555 GMT, NYMEX April RBOB was up 2.51 cents at $1.9615/gal and April ULSD was 3.45 cents higher at $1.8426/gal.

US gasoline inventories plunged 13.62 million barrels to 243.47 million barrels during the week ended Feb. 26, US Energy Information Administration data showed March 3. It was the largest one-week draw reported by the EIA in records dating back to January 1992, and put inventories nearly 4% behind the five-year average.

NYMEX April WTI was up $1.81 at $61.56/b and ICE May Brent was $1.58 higher at $64.28/b.

In contrast, US commercial crude oil inventories saw their largest one-week build on record last week, with inventories rising 21.56 million barrels to 484.61 million barrels last week, the EIA said. The build pushed stocks 4% above the five-year average.

But nearly 97% of the crude build was realized on the US Gulf Coast, where lingering winter storm disruptions had pushed refinery net crude inputs down 35% from the week prior to a 3.89 million b/d — the lowest since September 2008.

Notably, inventories at the NYMEX delivery point of Cushing, Oklahoma, climbed just 490,000 barrels to 48.31 million barrels.

Both the gasoline draw and crude oil build exceeded market expectations.

American Petroleum Institute data released late March 2 showed US crude supplies were higher by 7.36 million barrels last week and gasoline stocks dropped by 9.93 million barrels.

Bunkerworld .,
3rd March 2021 16:13 GMT