US Crude Oil Inventories INCREASED This Past Week -- June 6, 2018

Updates

Later, 10:25 a.m. CDT: delayed reaction? Immediately after the EIA weekly US crude oil inventory number was released, WTI dropped ten cents. With a build of over 2 million bbls, one would have expected a bigger drop in the price of WTI. Well, that drop in WTI happened: it's now down a full dollar/bbl and trading well below $65/bbl. One has to ask: if CLR and others were going to hedge, did they wait too long by not hedging when WTI hit $72? Meanwhile, the Dow is back up 170 points. One would expect the Dow to fall with shares in oil stocks falling. It must be AAPL. Let's see. Nope, no AAPL. AAPL is trading slightly lower. Dow components suggest the Dow is moving up due to the banks and Boeing. To some degree, surprisingly, the oil companies are slightly positive. That could change by the end of the day.

Original Post

Weekly petroleum report, link here:

• US crude oil inventories: increased by 2.1 million bbls
• US crude oil inventories: 436.6 million bbls; "in the lower half of the average range for this time of year" -- per the EIA; my own "baseline" -- 350 million bbls -- so for me, an inventory of 437 million bbls is still a huge over-supply
• total motor gasoline inventories increased by 4.6 million bbls last week (and yet gasoline prices are said to be going up)
• distillate fuel inventories rose by 2.2 million bbls
• refineries operating at 95.4% capacity -- a huge jump from the recent 91% to 93%; despite that, gasoline production DECREASED last week, slightly under the "benchmark" of 10 million bbl/day
• distillate fuel production INCREASED slightly last week, slightly over the "benchmark" of 5 million bbl/day

Following the report, WTI dropped ten cents to $65.42/bbl.

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Note For The Granddaughters

I cannot make this up.

Four days ago I was playing Magic: The Gathering with our oldest granddaughter. My iPhone was on the table. During play, I asked clearly and distinctly, "Seriously?" to some play that Arianna had made.

I was startled when I was interrupted by this from the iPhone: "Yes. I am serious. What can I help you with?"

I kid you not.

Now this, the photo sent to me by my wife (I had told her the story earlier):