Early Signs Of Gasoline "Re-Balancing" Seen In New York State -- July 14, 2017

Link at Bloomberg.

Mid-Atlantic gasoline supplies are now more than 5 million barrels lower than year-ago levels, an impressive decline considering stockpiles in the region swelled to 42.3 million in February -- the highest level in government records going back to 1990.

“East Coast importers are being much more disciplined in terms of their purchases, mindful of avoiding a replay of the supply glut we saw last summer,” said Matt Smith, ClipperData LLC’s director of commodity research.

This time last year, gasoline futures traded on the New York Mercantile Exchange signaled the East Coast gasoline glut wasn’t going anywhere as August futures were cheaper than September for the first time in eight years. That spread is back to its typical backwardated structure this July, which is a relief to suppliers ready to flip their tanks to winter-grade fuels.

Total U.S. gasoline demand slowed in the first three months of this year after reaching a record high 9.66 million barrels a day in June 2016. This trend finally reversed in April as consumption rose 0.1 percent from the prior year.

One swallow does not a spring make. Check back next week.