Energy prices were weak on Tuesday, the entire complex began the new month where it ended the old one, i.e. on an ugly note.
As far as today’s DOE report goes, the crowd is expecting a net draw of 0.5 MMbbls in the major products and a draw of 1.0 MMbbls in crude oil.
As always, you should take the Street’s guesstimate for what it is worth… not much.
- BP Makes 'Giant' Oil Find in Gulf of Mexico
Per last week’s DOE report, gasoline supplies fell by a de minimis 1.7 MMbbls or 0.9%. This report tends to be one of the largest of the year as vacation season peaks. In fact, along with the end-of-season purge in wintergrade material, this is when we see the largest draws in gasoline. In this vein, given the lateness of this year’s U.S. Labor Day holiday, a very large draw in gasoline per this morning’s report is to be expected.
Since the U.S. Memorial Day holiday (May 25th) DOE gasoline supplies actually increased by 4.1 MMbbls or 2.0%. At this point in the season we normally see a draw of around of 9.6 MMbbls or 4.6%. A build in gasoline supplies through the summer driving season has only occurred once (2004) over the last 20 years for which the DOE provides data.