Last Wednesday Uncle Sam reported that commercial stocks rose by 0.8%. Bottom line, stocks are on pace to end the third quarter at the highest level since 1991… and at the 18th highest level since… 1920… since the era of the break-up of Standard Oil! For this morning’s report the crowd is looking for a 2.0 MMbbl build. Last night the API reported 0.25 MMbbl draw.
Per a story on Reuters… Sunoco will indefinitely idle its 145 Mbbl/d Eagle Point refinery near Philadelphia, to reduce losses in its refining business.
“Sunoco will shift current Eagle Point production to its two nearby refineries in Marcus Hook and Philadelphia, Pennsylvania, which will now operate at higher capacity utilization…”
Roughly 400 workers will be furloughed as a result.
It’s a good thing Wall Street keeps telling us that demand for oil is so strong; otherwise, we presume Sunoco would really be in trouble.
The Schork ReportTrading Strategy:
Post DOE bids through yesterday’s 71.97 high print alert to follow through momentum towards our 72.75 inflection-point.
We will look for further strength above here towards our 74.63 intra-day.
On the other hand, offers through the 62% retrace at 69.98 clear a path towards our 69.01 inflection-point. Below here we will look for offers towards our 67.13 intraday.
Stephen Schork is the Editor of, "The Schork Report"and has more than 17 years experience in physical commodity and derivatives trading, risk systems modeling and structured commodity finance.