ISM Services & EIA Crude
Weekly EIA Inventories: Crude Oil +2.1M barrels at their highest level in 7 years. Gasoline -4.4M barrels, Distillates -2.6M barrels.
The last two weeks large drawdowns in gasoline have been caused by suppliers dumping their MTBE blended gasoline supplies before the May 5th deadline to phase out MTBE.
In addition, refineries have been running at only 85% capacity due to a higher than normal maintenance season. This has contributed to a 84K barrel per day decrease in gasoline and distillates production.
Crude oil contracts moved higher, above $67 despite bulging oil supplies, as did gasoline futures on the abnormal capacity utilization and MTBE supply dumping.
It is expected that once capacity utilization picks back up and summer driving season starts, that the surplus crude supply will be eaten up in short order.
ISM Services Full Report
ISM Services Sector Index at 60.5 vs prior 60.1; New Orders at 59.5 vs prior 56.2; Employment at 54.6 vs prior 58.2; Inventories at 54 vs prior 53; Prices at 60.5 vs 64.8; Backlog at 50.5 vs prior 54.
Showing the services sector still growing at a nice clip. Employment growth is slowing as are backlogs and prices paid are still increasing but at a slower rate.
The last two weeks large drawdowns in gasoline have been caused by suppliers dumping their MTBE blended gasoline supplies before the May 5th deadline to phase out MTBE.
In addition, refineries have been running at only 85% capacity due to a higher than normal maintenance season. This has contributed to a 84K barrel per day decrease in gasoline and distillates production.
Crude oil contracts moved higher, above $67 despite bulging oil supplies, as did gasoline futures on the abnormal capacity utilization and MTBE supply dumping.
It is expected that once capacity utilization picks back up and summer driving season starts, that the surplus crude supply will be eaten up in short order.
ISM Services Full Report
ISM Services Sector Index at 60.5 vs prior 60.1; New Orders at 59.5 vs prior 56.2; Employment at 54.6 vs prior 58.2; Inventories at 54 vs prior 53; Prices at 60.5 vs 64.8; Backlog at 50.5 vs prior 54.
Showing the services sector still growing at a nice clip. Employment growth is slowing as are backlogs and prices paid are still increasing but at a slower rate.
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