The funds are really scrambling to build a larger position in the long gasoline crack spreads.
The funds are back in the market, showing a strong commitment on long positions for crude.
The fundamentals across most of the complex are so bearish that on any given day you're either going to need to a lead from gasoline or some bullish geopolitical headlines to give this market a rally. Otherwise it's just going to sink.
The biggest surprise was the increase in distillate stocks.
Retail prices are going to vary among regions but for all practical purposes $3 is a floor.
High prices are eating into consumer demand, and the focus is on gasoline because of the upcoming driving season.
You still have a sizable year-on-year deficit in distillate stocks, so it's too early in the winter to write off this distillate market.
But they do provide evidence that the oil infrastructure can bounce back pretty quickly after a really bad storm. These gasoline numbers give a cushion.
The problem with sufficient refinery capacity to produce gasoline still presents an issue, at least within the US.
It's easy to analyze this one because there is only one number to talk about. That gasoline build was just huge again.
