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Petroleum

Gasoline Prices Surge Amid Inventory Data Discrepancies

Strategic Insights

— 1 min read

Washington -- Inventory data showing gasoline stocks had dropped to a 24-year low has triggered a surge in gasoline prices. The September gasoline contract on the New York Mercantile Exchange (Nymex) settled up 0.94 cents at 56.45 cents/gallon, with prices reaching as high as 1.24 cents. Crude oil prices, however, remained stagnant, trading in a narrow range of $17.79-$17.98/bbl.

Despite the spike in gasoline futures, cash prices remained relatively steady, firming only 0.5 cents-0.8 cents/gallon from Tuesday's trades. The discrepancy in inventory data has left the market uncertain, with the Department of Energy reporting a 3 million bbl build in stocks, contradicting American Petroleum Institute (API) data indicating a 332,000 bbl draw.

Key Takeaways:

  • Gasoline stocks have dropped to a 24-year low, with a total of 12.54 million bbl lost over the past six weeks.
  • The current gasoline stock level stands at 195.45 million bbl, 14 million bbl down from year-ago levels.
  • The decline in gasoline stocks also includes a 4 million bbl draw in reformulated gasoline (RFG) stocks, the lowest level since the RFG program began in January.
  • API data shows that gasoline stocks have been drawn down for the past six weeks, with the previous low of 197.40 million bbl seen in November 1991.
  • The Department of Energy's report of a 3 million bbl build in stocks is contradicted by API data indicating a 332,000 bbl draw.
  • Gasoline cash prices remained relatively indifferent to the inventory data, firming only 0.5 cents-0.8 cents/gallon from Tuesday's trades.

Statistics:

  • Gasoline stocks have lost a total of 12.54 million bbl over the past six weeks.
  • Current gasoline stock level stands at 195.45 million bbl, a 14 million bbl decrease from year-ago levels.
  • Reformulated gasoline (RFG) stocks hit their lowest level since the RFG program began in January, with a 4 million bbl draw.
  • The Department of Energy's report showed a 3 million bbl build in stocks.
  • API data indicated a 332,000 bbl draw in gasoline stocks.

Sources:

  • New York Mercantile Exchange (Nymex)
  • American Petroleum Institute (API)
  • Department of Energy
  • unnamed Gulf Coast trader (as quoted in the article)

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