CLICK HERE TO WATCH THE FULL INTERVIEW
This Week’s Summary:
Despite the seemingly endless winter and the low temperatures, which have driven distillates demand year over year increases into double digits, U.S. crude production and refinery outputs have balanced the demand growth.
It may be difficult to grasp, but in the refinery world the winter has only about two weeks to go as they now go into maintenance mode to prepare for increased gasoline production for the driving season.
Current gasoline inventories are at the midpoint of the 5-year average so no need to get into pump panic mode yet.
These levels must be watched as the maintenance period gets into swing.
The key right now for mid-term gasoline prices will be the Distillate levels, which in winter influence gas prices.
Current distillate levels are in the lower half of the 5-year average band. An extended winter will lower distillate inventories forcing delays in the switch over to gasoline, which will lower gasoline inventories even before the refineries can prep for the driving season.
Roger McKnight, Chief Petroleum Analyst
Add comment