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Petroleum industry

Bearish Gasoline Inventory Reports Spark Sell-Off in Petroleum Futures

Strategic Insights

— 1 min read

Bearish reports from the American Petroleum Institute (API) and Energy Information Administration (EIA) regarding gasoline inventory triggered a technical sell-off in petroleum futures, causing prices to plummet. The EIA figures for the week ending April 17 showed an unexpected rise in gasoline stocks, with traders quickly reassessing their long positions on the New York Mercantile Exchange (Nymex). The subsequent sell-off had significant effects on various petroleum futures contracts.

Key Takeaways:

  • The API and EIA reported increases in gasoline stocks, with EIA figures showing a 800,000 bbl rise in gasoline stocks and a 5 million bbl rise in crude stocks.
  • Refinery utilization rate increased by 4.1 percentage points to 99.6% of capacity, according to the EIA.
  • The unexpected rise in gasoline stocks led to a technical sell-off in petroleum futures, with May Nymex gasoline futures sinking to an intraday low of 50.50 cents/gallon.
  • June light, sweet crude futures dropped to a low of $15.50/bbl, with the front-month crude contract closing down 44 cents at $15.54/bbl.
  • Heating oil couldn't resist the complex's downward pull, with the May contract ending the day down 0.98 cents at 43.06 cents/gallon.
  • The American Gas Association's (AGA) storage report showed bearish numbers, causing a 16.3 cent drop in the Nymex Henry Hub gas futures contract for May delivery, which settled at $2.398/MMBtu.

Statistics:

  • 2.07 cents: The price drop for May Nymex gasoline futures.
  • 44 cents: The drop in the front-month crude contract.
  • $15.54/bbl: The closing price of the front-month crude contract.
  • $2.398/MMBtu: The May Nymex Henry Hub gas futures contract price after the sell-off.
  • 16.3 cents: The drop in the Nymex Henry Hub gas futures contract price.
  • 6 cents: The average rise in South Texas Gulf Coast prices in the spot market.
  • 5 cents: The average rise in Louisiana Gulf Coast prices in the spot market.

Sources:

  • American Petroleum Institute (API)
  • Energy Information Administration (EIA)
  • New York Mercantile Exchange (Nymex)
  • American Gas Association (AGA)

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