Outlook For Crude Oil & Gasoline: Neutral To Very Bearish

$USO, $OIL, $UGA

Crude Oil traded mixed Wednesday. Data released early showed more weakness in China’s growth outlook. The front-month WTI contract was -0.31% as US inventory increased last week.

OPEC’s output was estimated to have risen +110-K BPD in September.

The Brent contract for a 2nd day running, adding +0.29%.

The US DOE/EIA reported that total Crude Oil and petroleum products stocks rose +3.65-M bbl to 1301.33-M bbl in the week ended 25 September. Crude Oil stockpile rose +3.96-M bbl to 457.92-M bbl as inventory soared +5.15-M bbl in PADD III.

Cushing, OK WTI stock was down -1.07-M bbl to 52.97-M bbl. Utilization rate dropped -1.1% to 89.9%.

Gasoline inventory rose +3.25-M bbl to 222.01-M bbl as demand decreased -2.11% to 9.02-M BPD. Production added +1.35% to 9.67-M BPD, while imports jumped +96.43% to 0.99-M BPD. Distillate inventory -0.27-M bbl to 151.61-M bbl, demand declined -12.96% to 3.76-M BPD. Production dropped -1.44% to 5.01-M BPD, while imports plunged -65.85% to 0.06-M BPD during the week.

Outlook for Crude Oil: Neutral to Very Bearish.

Stay tuned…

HeffX-LTN

Paul Ebeling