Another good DOE report. Crude gained, gasoline gained, and distillates gained.
Venezula and Nigeria cut their own oil output as a result of “low prices” (rediculous), but that news actually helped push oil prices lower because it was such a small cut (170,000 barrels together). I’m willing to bet while those countries cut their production, Saudi Arabia might be “secretly” ramping up their output.
Back to the DOE report: We’re now well above in every category: oil, gasoline, and heating oil. Not to mention natural gas spot prices have been flirting with $3!
Refinery utilization dropped to 89.9 and gasoline production dropped significantly yet inventories gained.
Looks like its time for fall maintenance!
Iran might be the only issue stopping us from getting a big drop in futures.
We could see $1.99 in scattered areas by weekend if prices drop on the wholesale market today.