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Vandana Hari

September 20, 2017

Crude climbs in Asia early Wed, buyoed by US stocks data from API – Vandana Hari

1. Benchmark crude futures were in the green in early Asian trade Wednesday and had reversed most of their modest losses made at Tuesday’s close, supported by a smaller than expected build in US crude stocks and sizeable draws in gasoline and distillate fuel oil inventories reported by the industry body, the American Petroleum Institute. The API data was released after market close Tuesday.

2. The API said US commercial crude inventories rose by 1.44 million barrels in the week to September 15, while gasoline stocks slid by 5.1 million barrels and distillates by 6.1 million barrels. Consensus expectations in the market had pointed to a bigger crude build and a smaller products draw.

3. The API data has support from other positive elements that boosted market sentiment last week, propping Brent up to a five-month high above $55/barrel — an upward revision by the International Energy Agency and OPEC last week of their estimates for global oil demand growth in 2017 and August data showing a contraction in OPEC’s crude supply volumes. Nonetheless, the market will be looking for corroboration from the latest weekly US stocks data from the official Energy Information Administration, due out later Wednesday. In the event of divergence, the latter holds more weight with the oil market.

4. The EIA data will also be parsed to gauge the evolving supply-demand balance of refined products, especially gasoline, in the US, as the Texas refining industry limps back to normalcy after being crippled by Hurricane Harvey, which hit the state bordering the Gulf of Mexico August 25. The storm had knocked offline more than 4 million b/d of the state’s refining capacity, roughly 22% of the US’ total, at its peak. The loss of refining capacity not only created fuel shortages within the US, but also in its export markets, prominently Canada and countries in South America. This in turn boosted margins on gasoline and diesel in Europe and Asia, prompting some of the refiners in these regions and the Middle East to boost operating rates.

5. A fire Tuesday at Valero’s 335,000 b/d Port Arthur refinery in Texas, which was in the process of restarting operations after a full shutdown prompted by Hurricane Harvey, highlighted the challenges awaiting operators of plants that withstood days of strong winds, torrential rains, extensive flooding and power outages. The fire was said to have started in a heavy oil tank of the Valero refinery, according to a CNBC report. It was not immediately clear if the refinery had been shut down again as a precautionary measure.

6. Meanwhile, at least three Texas refineries with a total capacity of 372,000 b/d remained shut as of Tuesday local time, the US Department of Energy said. That number has remained static since last Thursday, and includes Total’s 224,500 b/d Port Arthur refinery. At least 10 other refineries with a total nameplate capacity of around 3.3 million b/d are running at less than 100% rates. The US EIA expects September and October crude throughput across the country’s refining system to average 15.3 million b/d and 15.9 million b/d, versus 17.1 million b/d in August.

7. Elsewhere in the financial markets, the US Federal Reserve was expected to announce its latest monetary policy decisions at the end of a two-day meeting Wednesday US time. While interest rates are expected to be held steady for now, investors are awaiting details on how the central bank plans to unwind its $4.5 trillion balance sheet, which would impact the US dollar’s strength. The US dollar basket is languishing 11% below its 14-year-high close of above 103 at the beginning of January.

Data In Sight

Vandana Hari

Founder, Vanda Insights
Singapore

Crude InSight – September 20, 2017
Crude InSight – September 19, 2017
Crude InSight – September 18, 2017
Crude InSight – September 15, 2017
Crude InSight – September 14, 2017
Crude InSight – September 13, 2017
Crude InSight – September 12, 2017
Crude InSight – September 11, 2017
Crude InSight – September 8, 2017
Crude InSight – September 7, 2017
Crude InSight – September 6, 2017
Crude InSight – September 5, 2017
Crude InSight – September 4, 2017
Crude InSight – September 1, 2017
Crude InSight – August 31, 2017
Crude InSight – August 30, 2017
Crude InSight – August 29, 2017
Crude InSight – August 28, 2017
Crude InSight – August 25, 2017
Crude InSight – August 24, 2017
Crude InSight – August 23, 2017
Crude InSight – August 22, 2017
Crude InSight – August 21, 2017
Crude InSight – August 18, 2017
Crude InSight – August 16, 2017
Crude InSight – August 15, 2017
Crude InSight – August 14, 2017
Crude InSight – August 10, 2017
Crude InSight – August 9, 2017
Crude InSight – August 8, 2017
Crude InSight – August 7, 2017
Crude InSight – August 4, 2017
Crude InSight – August 3, 2017
Crude InSight – August 2, 2017
Crude InSight – August 1, 2017
Crude InSight – July 31, 2017
Crude InSight – July 28, 2017
Crude InSight – July 27, 2017
Crude InSight – July 26, 2017
Crude InSight – July 25, 2017
Crude InSight – July 24, 2017
VIEWS ON NEWS: OIL THIS WEEK – July 8, 2017
Crude InSight – July 6, 2017
Crude InSight – July 5, 2017
Crude InSight – July 4, 2017
Crude InSight – July 3, 2017
Crude InSight – June 30, 2017
Crude InSight – June 29, 2017
Crude InSight – June 28, 2017
Crude InSight – June 27, 2017
Crude InSight – June 23, 2017
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Crude InSight – June 19, 2017
Crude InSight – June 16, 2017
Crude InSight – June 15, 2017
Crude InSight – June 14, 2017
Crude InSight – June 13, 2017
Crude InSight – June 12, 2017
Crude InSight – June 9, 2017
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Crude InSight – June 5, 2017
Crude InSight – June 2, 2017
Crude InSight – June 1, 2017
Crude InSight – May 31, 2017
Crude InSight – May 30, 2017
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Crude InSight – May 22, 2017
Crude InSight – May 19, 2017
Crude InSight – May 18, 2017
Crude InSight – May 17, 2017
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Crude InSight – May 15, 2017
Crude InSight – May 12, 2017
Crude InSight – May 11, 2017
Crude InSight – May 10, 2017
Crude InSight – May 9, 2017
Crude InSight – May 8, 2017
VIEWS ON NEWS: OIL THIS WEEK – May 5, 2017
Crude InSight – May 5, 2017
Crude InSight – May 4, 2017
Crude InSight – May 3, 2017
Crude InSight – May 2, 2017
VIEWS ON NEWS: OIL THIS WEEK – April 28, 2017
Crude InSight – April 28, 2017
Crude InSight – April 27, 2017
Crude InSight – April 26, 2017
Crude InSight – April 25, 2017
Crude InSight – April 24, 2017
VIEWS ON NEWS: OIL THIS WEEK – April 21, 2017
Crude InSight – April 21, 2017
Crude InSight – April 20, 2017
Crude InSight – April 19, 2017
Crude InSight – April 18, 2017
Crude InSight – April 17, 2017
VIEWS ON NEWS: OIL THIS WEEK – April 14, 2017
Crude InSight – April 13, 2017
Crude InSight – April 12, 2017
Crude InSight – April 11, 2017
Crude InSight – April 10, 2017
Crude InSight – April 3, 2017
VIEWS ON NEWS: OIL THIS WEEK – March 31, 2017
Crude InSight – March 31, 2017
Crude InSight – March 30, 2017
Crude InSight – March 29, 2017
Crude InSight – March 28, 2017
Crude InSight – March 27, 2017
VIEWS ON NEWS: OIL THIS WEEK – March 24, 2017
Crude InSight – March 24, 2017
Crude InSight – March 23, 2017
Crude InSight – March 22, 2017
Crude InSight – March 21, 2017
Crude InSight – March 20, 2017
VIEWS ON NEWS: OIL THIS WEEK – March 17, 2017
Crude InSight – March 17, 2017
Crude InSight – March 16, 2017
Crude InSight – March 15, 2017
Crude InSight – March 14, 2017
Crude InSight – March 13, 2017
VIEWS ON NEWS: OIL THIS WEEK – March 10, 2017
Crude InSight – March 9, 2017
Crude InSight – March 7, 2017
Crude InSight – March 6, 2017
VIEWS ON NEWS: OIL THIS WEEK – March 3, 2017
Crude InSight – March 3, 2017
Crude InSight – March 2, 2017
Crude InSight – March 1, 2017
Crude InSight – February 28, 2017
Crude InSight – February 27, 2017
VIEWS ON NEWS: OIL THIS WEEK – February 24, 2017
Crude InSight – February 24, 2017
Crude InSight – February 23, 2017
Crude InSight – February 22, 2017
Crude InSight – February 21, 2017
Crude InSight – February 9, 2017
Crude InSight – February 8, 2017
Crude InSight – February 7, 2017
Crude InSight – February 6, 2017
VIEWS ON NEWS: OIL THIS WEEK – February 3, 2017
Crude InSight – February 3, 2017
Crude InSight – February 2, 2017
Crude InSight – February 1, 2017
Crude InSight – January 31, 2017
VIEWS ON NEWS: OIL THIS WEEK – January 27, 2017
Crude InSight – January 27, 2017
Crude InSight – January 26, 2017
Crude InSight – January 25, 2017
Crude InSight – January 24, 2017
Crude InSight – January 23, 2017
VIEWS ON NEWS: OIL THIS WEEK – January 20, 2017
Crude InSight – January 17, 2017
Crude InSight – January 16, 2017
VIEWS ON NEWS: OIL THIS WEEK – January 13, 2017
Crude InSight – January 13, 2017
Crude InSight – January 12, 2017
Crude InSight – January 9, 2017
VIEWS ON NEWS: CRUDE COMPASS, Special Issue – January 6, 2017
Crude InSight – January 6, 2017
Crude InSight – January 5, 2017
Crude InSight – January 4, 2017
Crude InSight – January 3, 2017
Crude InSight – December 15, 2016
Crude InSight – December 14, 2016
Crude InSight – December 13, 2016
Crude InSight – December 12, 2016
VIEWS ON NEWS: OIL THIS WEEK – December 9, 2016
Crude InSight – December 9, 2016
Crude InSight – December 8, 2016
Crude InSight – December 7, 2016
Crude InSight – December 6, 2016
Crude InSight – December 5, 2016
VIEWS ON NEWS: OIL THIS WEEK – December 2, 2016
Crude InSight – December 2, 2016
Crude InSight – December 1, 2016
Crude InSight – November 30, 2016
Crude InSight – November 29, 2016
Crude InSight – November 28, 2016
VIEWS ON NEWS: OIL THIS WEEK – November 25, 2016
Crude InSight – November 25, 2016
Crude InSight – November 24, 2016
Crude InSight – November 23, 2016
Crude InSight – November 22, 2016
Crude InSight – November 21, 2016
VIEWS ON NEWS: OIL THIS WEEK – November 18, 2016
Crude InSight – November 18, 2016
Crude InSight – November 17, 2016
Crude InSight – November 16, 2016
Crude InSight – November 15, 2016
Crude InSight – November 14, 2016
VIEWS ON NEWS: OIL THIS WEEK – November 11, 2016
Crude InSight – November 11, 2016
Crude InSight – November 10, 2016
Crude InSight – November 9, 2016
Crude InSight – November 8, 2016
Crude InSight – November 7, 2016
VIEWS ON NEWS: OIL THIS WEEK – November 4, 2016
Crude InSight – November 4, 2016
Crude InSight – November 3, 2016
Crude InSight – November 2, 2016
Crude InSight – November 1, 2016
VIEWS ON NEWS: OIL THIS WEEK – October 28, 2016
Crude InSight – October 28, 2016
Crude InSight – October 27, 2016
Crude InSight – October 26, 2016
Crude InSight – October 25, 2016
Crude InSight – October 24, 2016
VIEWS ON NEWS: OIL THIS WEEK – October 21, 2016
Crude InSight – October 21, 2016
Crude InSight – October 20, 2016
Crude InSight – October 19, 2016
Crude InSight – October 18, 2016
Crude InSight – October 17, 2016
VIEWS ON NEWS: OIL THIS WEEK – October 14, 2016
VIEWS ON NEWS: OIL THIS WEEK – October 07, 2016
VIEWS ON NEWS: OIL THIS WEEK – September 23, 2016
VIEWS ON NEWS: OIL THIS WEEK – September 16, 2016
VIEWS ON NEWS: OIL THIS WEEK – September 09, 2016
VIEWS ON NEWS: OIL THIS WEEK – September 02, 2016
VIEWS ON NEWS: OIL THIS WEEK – August 26, 2016