The Energy Department says motor gasoline inventories increased 2.1 million barrels last week to total 202.7 million, marking the first boost in supply in nine weeks. Gasoline stockpiles have shrunk 25.3 million barrels over the past eight weeks.
Crude stocks swoll (that’s a proper, East Texas noun) 1.7 million barrels to 346.7-million-- which is 5.3% more crude on hand now than this time last year.
Distillate supplies fell 1.1 million barrels to 114.5 million…but they're still 9.6% ahead of last year. There’s more of that stuff on supply now than then, too.
Singing from the same hymnal, The American Petroleum Institute’s version reported crude inventories up a little more, at 2 million barrels for last week. API motor gasoline tallies showed inventories ahead 4 million barrels, double the Energy Department's numbers. The API figures Distillate stocks were off 1.3-million barrels.
What do you think happened to commodity prices this morning, as a result?
Without an act of congress, without a windfall tax on the oil companies, without an IRS inquisition into Exxon’s earnings, and without a $100 cash rebate to voters…June crude fell 86 cents to $73.75 a barrel.
Iran is still giving the UN the middle finger, the Nigerians are still blowing up oil wells to keep profits in their country (somebody please give me the logic on that brainstorm…) and we’re still at war in Iraq…and June unleaded gas lost 3.76 cents to $2.1375 a gallon.
Isn’t it amazing how market dynamics work?
Gasoline supplies are still 4.8% below last year’s levels at this time--due in part to the formulation changes required by Congress--which is why you’re still paying more at the pump than this time last year (Capitol Hill is still experiencing a huge disconnect with the cause-and-effect of that gambit.) But the market dynamic theory remains provable. More stuff, less cost.
Less stuff, more cost. No artificial additives (by lawmakers) needed.
Congress, pump that through your pipeline and smoke it.