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Softening Spreads Still Wide Enough to Drive Trade as Market Shifts Focus to Gasoline

Minneapolis, MN | February 27, 2023 | By: Steve Sinos, Blue Lacy Advisors, LLC

Crude Oil

The EIA reported a monstrously wide build in commercial crude stocks for the second time in 2023, estimating stocks rose by 16.27mm bbls for the week ended February, 2023 10 and marking the sixth consecutive week of rising commercial stocks. It is a bit of a surprise to see such a build during a week when the call on US crude rose by ~690kbd – imports were lower by 826kbd, exports rose by 246kbd, while refinery runs were lower by 383kbd.

Exports are expected to continue to support US domestic production, which has risen to an estimated 12.3mm bpd. Granted, these numbers are subject to change, and with adjustment factors in the weekly report reaching ~2mm bpd, reconciling the weekly estimates against monthly reports is increasingly important.

*This summary is based off February 20, 2023

A free excerpt, such as this one, will be published on a delay periodically. This is an excerpt from Blue Lacy Advisors, LLC's (“Blue Lacy”) weekly commentary for clients, which is based on a collection of models, research/analytical subscriptions, and bespoke work. Each week Blue Lacy explores how market drivers included in these analyses might affect or be used in clients' planning, budgeting, and execution of strategy. Call Blue Lacy to make an appointment today!


Meet the Author!

Phone: +1-832-413-3124

Steve has spent his career in strategy, risk, trading, and investment. He works with investors to source investments in opportunistic or high growth sectors, with particular interest in early-stage companies solving clearly defined problems.

He is currently a Managing Partner with Blue Lacy Advisors LLC, giving management teams and investors confidence in their decision making by supporting strategic planning and execution, risk management, commodity trading, and market analysis.

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