Mid-Session Energy Market Report
Wed 09 Jan 2013 11:19:48 CT
Related Keywords: Energy

The crude oil complex grinded higher during the initial morning hours, supported by favorable US corporate earnings that pointed to improving global demand. Markets across the complex took a negative turn following EIA inventory data for last week that showed much larger than expected product builds. EIA data showed a build in crude stocks last week of 1.314, which was slightly lower than expected. The build came from a rather large rebound in import activity, as well as a new record high level of supply in Cushing Oklahoma. The refinery operating rate was down 1.3% to 89.1%. Weakness in the complex was led by February RBOB, which turned sharply lower after logging its seventh consecutive build last week. EIA data showed an increase in US supply that was more than two times greater 7.412 million barrels. Meanwhile, average total gasoline demand for the past four weeks was down 2.27% compared to last year. EIA distillate stocks rose 6.777 million barrels, which was also much larger than expected. Meanwhile, February natural gas prices trended down toward last week's low, pressured by data pointing to record high US production and near record inventory levels.


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