Pump-Prices Continue To Surge, Gasoline Inventories See Small Build

Crude prices slid back to unchanged this morning – from some overnight gains – after a hotter than expected CPI print took demand-seducing rate-cuts off the table.

However, as Bloomberg reports, oil is still up 19% this year as OPEC+ cuts supply and geopolitical tensions across the Middle East create strong tailwinds. The market is bracing for Iran’s response to a suspected Israeli attack on its consulate in Syria last week, and top traders have been striking an increasingly bullish tone in recent days.

API reported a sizable crude build and another gasoline draw – all eyes will be on the official data for any confirmation.

API

Crude +3.03mm (+800k exp)
Cushing +124k
Gasoline -609k (-1.4mm exp)
Distillates +120k (-600k exp)

DOE

Crude +5.84mm (+800k exp)
Cushing -170k
Gasoline +715k (-1.4mm exp)
Distillates +1.66mm (-600k exp)

Bigger than expected crude build surprised traders but a build in gasoline stocks was probably the most notable aspect of the report…

Source: Bloomberg

In aggregate, this is a pretty chunky nationwide inventory build. Total crude and product stockpiles climbed by 12 million barrels, excluding SPR last week. That’s the biggest weekly gain since July last year. In addition to crude build, there were also increases in the other oils category, as well as gasoline, jet fuel and diesel.

The Biden admin added 595k barrels to the SPR last week…