In its latest weekly energy inventory report, the Department of Energy (DoE) announced that after five straight weekly draws, crude oil inventories increased modestly in the latest week. However, as the chart below shows, crude oil stocks remain well below average. At first glance, energy markets have sold off sharply on the news. However, we don't need to tell you that things can change quickly in these markets, especially with a Fed announcement coming later in the day.
Distillate fuels also showed a build in the latest week, and unlike crude inventories, stockpiles are above average and the spread versus average is at its highest levels of the year.
Finally, unlike crude oil and distillates, gasoline inventories actually declined slightly during the week. At current levels the spread between the current and average spread is the lowest it has been all year.
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