Gasoline prices continue to decline as inventories rise

  • Gasoline futures prices under pressure after EIA data release
  • Crude oil and ULSD futures rising despite increase in distillate supplies
  • Gasoline futures have been under pressure for over a week
  • June NYMEX RBOB contract down 2.24cts to $2.5210/gal
  • ULSD contracts rising, but gains under 1ct
  • Crude contracts rising, but gains relatively muted
  • Crude inventories fell by 1.4 million bbl
  • Gasoline inventories higher by 900,000 bbl
  • Implied gasoline demand increased last week
  • Gasoline futures prices benefiting U.S. retailers

Gasoline futures prices were seeing another day of strong losses Wednesday after Energy Information Administration data released in the morning showed an increase in inventories and continued lackluster demand. Crude oil and ULSD futures were rising, even as EIA reported an increase in U.S. distillate supplies. Gasoline futures have been under pressure for more than a week and Wednesday is seeing a continuation of that trend. The June NYMEX RBOB contract was down 2.24cts to $2.5210/gal at about 11:30 a.m. ET, while July prices were 1.82cts lower to $2.5001/gal. While ULSD contracts were rising, the gains were under 1ct, with the front-month contract moving 0.82ct higher to $2.4738/gal while July prices inched up 0.8ct to $2.487/gal. Crude contracts have been rising through the trading session, though gains heading into the afternoon were relatively muted, with the June contract for West Texas Intermediate crude up 47cts to $78.85/bbl while July prices added 41cts to $78.47/gal. Brent crude increases were even slighter, with July Brent advancing 36cts to $83.52/bbl and August prices 28cts higher to $83/bbl. Crude prices are being supported by the latest EIA data, which showed crude inventories fell by 1.4 million bbl in the week ending Friday. Crude stocks are about 3% below seasonal averages. The decline in crude stockpiles came as U.S. refinery utilization rose by one percentage point to 88.5%. The increased refinery output helped send gasoline inventories higher by 900,000 bbl last week, while distillate supplies rose 600,000 bbl. Gasoline supplies remain 2% below seasonal averages while distillate supplies are 7% lower than the seasonal five-year average. EIA’s measure of implied gasoline demand showed an increase last week, rising by about 180,000 b/d to nearly 8.8 million b/d. Nonetheless, gasoline demand remained about 4% below levels seen at the same time last year, EIA reported. OPIS DemandPro data, which is based on weekly surveys of more than 30,000 retailers nationwide, has shown a year-to-year lag in demand for most weeks so far this year, with OPIS data showing national demand year to date running about 5.6% below the same period in 2023. The recent weakness in gasoline futures prices is proving a boon for U.S. retailers, as gross rack-to-retail margins for gasoline are at some of the highest levels seen so far this year. U.S. gasoline margins were averaging 45.2cts/gal Wednesday afternoon, according to OPIS DemandPro data. That’s an increase of 6cts from a week ago and up more than 10cts from last month. Diesel margins are averaging 67.7cts/gal, an increase of 0.2cts from last week but up 12.2cts over the last month.

Factuality Level: 7
Factuality Justification: The article provides detailed information about gasoline futures prices, crude oil prices, inventories, demand, and refinery utilization. The information is based on data from the Energy Information Administration and OPIS DemandPro. There are no obvious signs of bias, sensationalism, or inaccuracies in the reporting.
Noise Level: 3
Noise Justification: The article provides detailed information on gasoline futures prices, crude oil prices, inventories, demand, refinery utilization, and margins. It includes relevant data and analysis, staying on topic without diving into unrelated territories. However, the article lacks in-depth analysis of long-term trends or antifragility, and it does not explore the consequences of decisions on those who bear the risks. Overall, the article contains mostly factual information related to the energy market.
Financial Relevance: Yes
Financial Markets Impacted: Gasoline futures prices
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the current state of gasoline futures prices, which is relevant to financial markets. However, there is no mention of any extreme event or its impact.
Private Companies: Oil Price Information Service (OPIS),Dow Jones & Co.
Key People: Steve Cronin (Reporter), Michael Kelly (Editor)

Reported publicly: www.marketwatch.com