Inventories moved up for gasoline and distillates, with crude and jet fuel easing, as the total of all products increased +2.2MB. The SPR decreased about 400KB. Originally, 172M barrels were slated to be pulled, AND within 5 months(?). 130.2 Million barrels have been pulled and the drawdown has slowed significantly, with less than 60K barrels a day for last report.
Gasoline consumption contines to decline on both y/y and m/m.
Gasoline prices continue to edge up, but diesel is the big story. Nationally, diesel prices will leap past $7 and California diesel with likely surpass $9.
The current national average of diesel, is at an all time high of $5.816 and when adjusting for inflation, is nearing the inflation adjusted figure of $6.554. It will surpass that shortly and will make a run for the July 2008 $4.767 inflation adjusted figure of $7.237.
While a lot of the issue is surrounding the Strait of Hormuz, the Ukraine shelling of Russia's refineries, and Russia limiting exports of refined products... also plays a role.
At some point, natural gas will be an issue in Europe, but not my focus. U.S. stocks of NG are in decent shape and pricing not too out of the ordinary. For those interested in Europe, here is their website.
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