EIA Weekly Petroleum Status Report Commentary

• Refineries reduced crude oil inputs by a modest 107,000 bpd after July HO and RBOB margins fell $3+ during the last week; Utilization is 0.1% lower at 87.8%
• Crude oil stocks ↑2.4 million barrels, 2.2 million barrels over expectations, but virtually all of the increase was in the somewhat independent US West Coast market
• Gasoline stocks ↓0.2 million barrels, as expected, after a 266,000 bpd increase in imports substituted a 220,000 bpd fall in domestic production

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EIA Weekly Petroleum Status Report Commentary

• A draw in distillate stocks of 1.0 million barrels was today's only surprise; Analysts expected a 1.3 million barrel increase
• Gasoline stocks ↓0.3 million barrels, vs. ↓0.6 million barrels expected, while crude stocks ↑0.2 million barrels, vs. ↑0.7 million expected
• Crude oil stocks at Cushing, OK surged further to 37.9 million barrels, an all-time record, reinforcing the view that landlocked and over-supplied Oklahoma crude should trade below Brent futures for the next few months
• Refineries decreased gross inputs by 83,000 bpd, resulting in a 0.5% decrease in refinery utilization to 87.9%
• Product cracks have steadily ebbed lower today: Jun0 RBOB is ↓$0.81 to $15.59 while Jun0 HO is ↓$0.41 to $12.56

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EIA Weekly Petroleum Status Report Commentary

• Gasoline stocks fell by 2.8 million barrels, vs. expectations of a 0.7 million barrel build, after imports fell by 293,000 bpd
• June 2010 RBOB crack is ↑$1.21 to $17.04, widening the June/July crack spread to over $4.00 as summer driving season begins
• Stocks at Cushing, Oklahoma surged to a record 37 million barrels, depressing WTI relative to Brent further: June 2010 Brent is now $5.00 over WTI
• Refinery utilization rates decreased 1.2% to 88.4%: crude oil consumption by refineries ↓110,000 bpd to 15.03 million bpd
• Ever-increasing domestic crude oil stocks are deepening the crude oil contango: Jun/Sep is $0.78 wider at $7.68

Consumer Hedge Tear Sheet

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Consumer Hedge Tear Sheet