Effect of Current Crude Oil Prices on Fuel Supplies

By Ben Sharples

Crude inventories in the U.S., the world’s largest oil consumer, probably rose to 391.5 million in the week ended May 23, according to the median estimate of eight analysts in the Bloomberg survey. Stockpiles expanded to 399.4 million through April 25, the highest level since the EIA began publishing weekly data in 1982.

Gasoline supplies probably climbed by 250,000 barrels last week, the survey shows. Distillates, including heating oil and diesel, are projected to have dropped by 200,000 barrels.

The EIA, the Energy Department’s statistical arm, will release its weekly stockpile data at 11 a.m. tomorrow in Washington, a day later than usual because of the Memorial Day holiday. The industry-funded American Petroleum Institute is scheduled to publish a separate report today.

“Investors have one eye on what’s happening in Ukraine,” said Jonathan Barratt, the chief investment officer at Ayers Alliance Securities in Sydney. “If inventories decline again, the market will focus on it, regardless of ample supply.”

WTI has technical resistance along its 30-day upper Bollinger Band, data compiled by Bloomberg show. Futures halted advances in early March and mid-April near this indicator, at about $105.25 a barrel today. Sell orders tend to be clustered around chart-resistance levels.

Credit: Bloomberg.com